Prepared For Retirement

How is it that so many are unprepared?

Will you be able to support yourself throughout your retirement? If you are like most Americans, the answer is unfortunately, no. An alarming economic problem is looming for future retirees, and it is bigger than you may think.

A few disturbing statistics to consider:

• 95% of people who reach retirement age don’t have enough money to retire
• A man and a woman, each aged 65, have a 91% chance that at least one partner will live to age 80. There is a 52% chance that at least one partner will live to age 90
• American seniors paid an average of $2,968 per month for assisted-living care in 2006. The national cost of a private room in a nursing home is $6,175 per month
• According to the Social Security Administration, an individual retiring in 2006 who was eligible for the maximum Social Security benefit would only receive $2,053 per month
• The annual savings rate in the United States for 2006 has dropped below 0%, the first time it has been so low since the Great Depression

The Economy and Social Security

The world economy is not functioning the way it used to. Because of continued globalization and shifting of jobs overseas, the U.S. middle class is shrinking. More simply put, the rich are getting richer and the poor are getting poorer. You might be living comfortably now, feeling secure in the middle class. But the impact of this economic shift may be devastating to the tax base that supports the government programs that you might be counting on for your retirement.

We all know that Social Security is a marginal guarantee, at best. In 2015, the Social Security Administration is anticipated to begin spending more money than it collects in taxes. According the Social Security trustees report, between 2037 and 2075 the program is forecasted to run annual deficits totaling $30 trillion.

When savings programs such as IRA’s and 401k’s were first introduced, they were not intended to completely replace pensions. They are often not even enough to solely support individuals during retirement. Fewer and fewer people are eligible for pensions and many of the pension programs still in place appear to be at a risk for default.

If you are like many Americans, you are at risk of being left without the means to support yourself at a time in your life when you are no longer able to work.

Is it too late to start preparing for retirement?
By following a disciplined plan for managing your home equity and investing prudently, you have the potential to gain financial security for your family and for your retirement.
Contact Us to learn more about how we can help.