Will You Be Prepared For Retirement?
According to statistics, due to many of the losses incurred during the “Great Recession” Americans are seriously underprepared for retirement. This is of even greater concern as Americans are living longer, which raises their overall cost and needs to live in financial freedom through retirement. The recent stats show that American men are projected to live until age 85, and women’s life expectancy has gone up to 87 years old! If you combine these statistics with the fact that 50% of Americans have less than $25,000 set aside in total household savings the retirement picture this paints is rather alarming.
2/3rds Of Americans Feel They Won’t Have Enough Money To Retire
Americans are definitely underfunded and under-concerned about their retirement predicament. Less than 1/3rd feel like they will have saved enough to retire in comfort, with the rest of America looking more at the here and now, job security, and other financial concerns to be wondering about retirement security. 30% stated that job uncertainty was their biggest financial concern, and only 2-4% stated retirement savings a primary concern. The problem is, most people are so busy getting by paycheck by paycheck, they are unable to concern themselves with retirement. The situation is so dire that only around half of the individuals interviewed stated they would be able to fund an additional $2,000 in an unexpected expense within the next month. So basically, there is no rainy day fund, no emergency savings, and certainly no retirement savings.
How Do I Prepare For Retirement If I Don’t Have The Money?
If you’re retirement preparation has been on hold, you certainly aren’t alone. However, you need to make some major strides in your finances in a short period of time in order to avoid spending your retirement in poverty. There are several priorities you need to consider:
- Health Insurance: Having enough money to cover your health insurance expenses will be imperative as your health expenses increase during your latter years.
- Make Cuts To Cost Of Living: It may seem difficult, or even impossible, but everyone has room to make cuts in their cost of living. In order to survive retirement with little to no savings, you need to learn to live on less. A Financial planner can help you carve out a realistic budget and savings plan to help you stay financially solvent.
- Properly Invest Whatever You Do Have Saved: Making sure your investments are properly allocated while keeping risk-reward in mind is also a very important aspect of retirement savings. Don’t take on high risk investments if it’s all you have to work with for retirement.
Speak To A Financial Advisor Before It’s Too Late
Whether your 30 or 60 it’s never too late to reroute your future and get on the right path for retirement. Take your circumstances by the reigns and get some financial help in order to improve your situation for retirement. For more information on how to accomplish this, speak to a Redhawk Wealth Advisor near you today.