Here’s the Background Story:
Significant planning goes into setting yourself up for a stress-free retirement. Americans dream of enjoying a carefree lifestyle when they’re 65, but that dream is difficult to obtain today. The economic reality is settling in for many that struggle to meet those financial goals. Have you figured out how to retire, or will you continue working into your senior years?
It all comes down to the numbers. You’ll want a financial expert to help you formulate a solid retirement plan. But, we can cover some basic guidelines to help Americans reach their retirement goals.
Social Security is a great start, but it’s most likely not enough. Paying the maximum amount into the system throughout your life nets $3,910 per month. That’s the best case scenario — many retirees take home $2,000 or less. That should be enough to pay the bills and a mortgage, but not much else.
The social security program wasn’t meant to be the be-all-end-all of retirement. Its original intent was to keep retirees above the poverty line when retirement ages were lower. American life expectancy has risen, but retirement policies haven’t followed suit.
Individual Retirement Accounts (IRAs) make up where federal aid is lacking. At least, that’s the idea. In reality, it’s hard to tell exactly how well-off you are based on national averages. The average IRA balance is $198,600, while the median is $63,000. That’s a significant discrepancy that doesn’t tell us much about the average American.
Using an IRA of $100,000 as an example paints an uninspiring picture. That’s another $5,000 a year when spread out over 20 years. Pocketing an extra $417 a month isn’t bad by any means, but it’s probably not what you’d expect from a lifetime of savings.
Comfortably retiring is difficult for many citizens. Plenty of seniors continue working into their twilight years to keep afloat. Have you saved up enough to retire comfortably, or at all? Let us know what you think.