Every so often I do a reality check here about the state of retirement in the U.S. Here is this quarter’s…
The three most common answers people give when asked about funding their retirement are:
- I’m going to work forever.
- The government will provide it: Social Security.
- I plan to win the lottery.
Let’s ignore the last one and just hit the big two…
Planning to Work Forever
Even if your health holds out, which for most of us will not, don’t plan on this option unless you know of a Medicare-funded nursing home that allows you to telecommute. This option is just ridiculous for most people.
Yes, there are a few of us who will be able to go to a business or practice law or medicine part time, or even full time, until we are very old, but the vast majority of us will have to shut down much sooner than we think.
Working forever is just not viable…
Depending on the Government
The best-case scenario for boomers is one where we still receive our monthly check but with lower adjustments for inflation, which is just a slow death. Or, much more likely, fewer and lower benefits. And remember, that’s a best-case scenario.
The numbers are just not there to support the program that is presently in place.
When I graduated from college is 1975 there were seven people working for every one receiving benefits. Now it is down to four to one and dropping. Add it up and the future for Social Security is not good and it will NOT fund your retirement.
And, a recent USA Today retirement poll had some very eye-opening numbers.
One-third of all working Americans have less than $1,000 saved.
Fifty-five percent of all working Americans and 39% of retirees have serious debt problems and report having almost nothing left to save.
In fact, most people surveyed had no clue how they will fund their retirement.
Solving the Problem
The solution: If you’re in your 50s, save everything possible.
In your 40s, save at least 10% of your take-home pay and ideally put it in an investment account.
As I have said many times in this segment, you must take control of your future and fund your own retirement. The longer you wait, the worse the numbers get. This is primarily a time issue and it is NOT on your side.
P.S. Looking for a boost in income? You may qualify for an odd “tax loophole.” These payouts have nothing to do with Social Security, unemployment, food stamps or any other regular program.
And you may be able to collect cash distributions of $840… $1,260… even $2,550 every 90 days – regardless of your income or employment status.
To find out how, click here.