Aren’t you sick of hearing about all this? Me too. It’s like affordable health care, blah, blah, blah ‼️
If Americans have all these concerns and fears about the future, why don’t they do something about it? And yes, there are things that can be done both on the individual and national level, but they take effort, some sacrifice and for many who profess to fear the future, a change in life-style. Here’s a clue; some of the things you think you an afford to do now; you can’t‼️
Let’s say you earn $100,000 a year. That’s a good income, right? Now let’s say you are going to retire in seven years and you want to maintain your current lifestyle; travel, spending on grandkids, a new car every few years, the works. To do that you need close to 100% income replacement. After considering what Social Security will provide, how much to do you need in investments to make up the difference assuming you withdraw 4% a year?
You need about $1,700,000 and that does not consider dealing with future inflation or the need for a separate emergency fund. 😰
Americans aren’t saving enough for retirement. One-third of all adults have zero retirement savings, and 23% have less than $10,000 tucked away, according to a new study by Merrill Lynch and Age Wave on retirement savings. The study surveyed nearly 5,000 people across the country age 25 and older.
Naturally, many people are concerned they’ll face economic strain after they exit the workforce. Americans don’t necessarily aim to be rich in retirement, but rather they want security and the ability to live comfortably without fear of running out of money.
While 88% of people aspire to save enough to have financial peace of mind, only 12% say they want to accumulate as much wealth as possible, the study reports.
Americans share three big concerns about threats to their retirement savings:
😷 an expensive health issue impacting themselves or a loved one,
🤑 inflation making it more expensive to afford basic living costs, and
🌈 the fear of not having enough money to do all the things they want to do.