The Facts To Know About Today’s Retiring Generation
Ten-thousand is a very big number. It is roughly the number of people who reach the age of sixty-five every single day in America. That number is significant of course because it is the age at which most are able to start collecting their Social Security benefits at the present time. It is also a time that many decide is right for them to start to enjoy their retirement. All of us should think about this time in our life long before we ever reach that age. The sooner that we can start to examine it, the more time we have to get it right.
How Retirement Savings Look At Various Ages
The average retirement savings age is different depending on the area of the country that a person lives, how much financial education they have, and what the overall economic picture is at any given moment. What we do know from figures published by CNBC.com is that the average amount of savings towards retirement that a person has varies by age group. The younger the person, the lower the average amount that a person has likely saved towards retirement.
It is not particularly surprising that younger people would not have as much saved yet. Not only have they not had as many years to save up their money, but they also do not necessarily think of retirement as something that will ever arrive for them. So many of us fall into the trap of never thinking that any particular event will reach us until it is very close to happening. Therefore, the average retirement savings age is higher than it really should be.
How Are The Baby Boomers Doing On Their Retirement Savings?
The relevant question about retirement today is how are the Baby Boomers doing on their retirement savings? They are the generation that is producing ten-thousand people over the age of sixty-five per day. It is important to all of society that they are doing well with their savings.
There is a mixed picture on the Baby Boomer average retirment savings question. There are some who have done a great job at saving, but there are many more who are far behind where they need to be. The Motley Fool has a breakdown of where the Baby Boomer average retirment savings exist today:
- Less Than $50,000: 37 Percent
- $50,000 to $100,000: 13 Percent
- $100,000 to $200,000: 14 Percent
- $200,000 to $300,000: 12 Percent
- $300,000 to $500,000: 9 Percent
- Over $500,000: 15 Percent
These are important statistics because they show just how stark the difference is between those who have done well with their savings, and those who really have not. To have more than one-in-three Baby Boomers with less than $50,000 in savings means that many will rely on public assistance to survive in retirement.
A big part of the social question of all of this is the fact that people are living longer on average than they ever did before. We have to prepare for perhaps twenty to thirty years of retirement. That was not always the case. Preparing for just a few years of retirement was what previous generations did. Now though, we have to take actions early in life to avoid being left with no money when we are unable to work. A lot of people are currently rolling the dice on the idea that the Federal government will be there to bail them out.
Americans Surviving On Little
A quick look at the average retirement income seniors in America is likely to make you very upset indeed. You will see how many Americans are living on very little, and some are even sacrificing their essentials just to make ends meet. It is not a pleasant picture, but it is the reality of the situation in America as of today.
The average retirement income seniors lives them in such a situation that they may have to choose between paying the rent or paying for their prescription medications. These are never easy decisions, and they are a testament to the poor planning for retirement that so many of us are doing.
New Retirement Inc has reported that a bit of good news exists on the retirement picture in America. They say that the latest report from Fidelity investments shows that more people than before are heeding the message of investing for retirement. They are starting to do more to prepare for their retirement in ways that are appropriate for their age. At least at this point people are seeing what they should be doing and are starting to do it.
How To Start Preparing For Retirement
There are steps that anyone at any age can take to start working towards their retirement goals. The basic crux of the matter is that everyone needs to stop overspending and start putting back some money for their future. It is not just about saving money though, it is also important to get that money working for you by investing it wisely.
Step one is to get on a reasonable budget that you can use to keep yourself on course towards better financial decisions. It is necessary to set a budget that you can stick to, but also one that you know will have you saving money towards your goals.
Once you have a reasonable budget set up and have started to save money, it is time to pay down those debts. Credit cards are a big problem for a lot of people. These cards charge huge amounts of interest, and that can make a person almost unable to keep up with the burden of paying them all down. Getting on a budget and putting extra money towards those credit cards is the only way to start making progress on the situation.
After that is taken care of, it is time to focus in on investing wisely. This means putting money into investment vehicles such as stocks and mutual funds. Obviously, it is a good idea to reach these investments heavily before putting your hard-earned money into them. Careful research will help you get your funds only into the type of investments that are the most likely to produce solid results for you. You want to shoot for a portfolio that produces a return that at least keeps you a few percentage points above inflation.
All of this planning requires a lot of work and forethought. That being said, it is entirely important to do it. There are so many who just feel like they can get to it at a later time. They are often the people who end up with very little money in their retirement accounts though. Do not allow yourself to fall into that category.