Confident about retirement? You may not be ready to retire for another 20 or 30 years or more. Even though that date is decades away saving a small amount that can accrue interest over a long period of time will give you something to live on in your golden years. Employee Benefit Research Institute found in the 2010 Retirement Confidence Survey that only 16% of workers feel that they will be able to have a comfortable retirement. This number has increased 3% over last year, yet most Americans haven’t saved enough money, and don’t know how to plan for retirement. Over half of Americans have $25,000 or less saved.
Retirement money has been cashed out and used prematurely because of joblessness. But too often retirement savings is often considered the annoying clingy friend you lost touch with. You know you need to call and keep in touch, you just don’t feel like it.
Retirement money should be treated like a piggy bank with no stopper. Keep adding to it until it is time to break it open. This doesn’t mean using it as a down payment for a home or for some other purpose. If there is no other choice like a job loss or medical emergency then use it, but retirement has a price.
Unless there is a revolution in the world of and a change in the way people think about long term money plans this could be a big problem.
I like things – nice things like other people do, but I know I don’t want to have to work after I’m 70 unless I want to. Many people come out of retirement or postpone retirement because they have to, not because they want to. Saving a little more and not investing all of the money in one place or type of asset there is a greater chance that there will be some money for retirement.
No calculator can give you the right amount you need to save for retirement. Use the guidelines of saving 10-15% of your annual salary and adjust it to your needs. For every person who has a lot of money to spend in the retirement there are dozens who are barely making ends meet.
Not adequately preparing for retirement seems like a gloom and doom story and it is for some people.
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