Senior Citizens Facing Poverty In All 50 States
When you dream of retirement what is it that you visualize? Perhaps the thought of traveling the world is tantalizing, or maybe you have concerned spending more time with the grandkids and puttering away in the garden. Sadly, many of America’s elderly are facing the unraveling of their retirement dreams in the face of poverty. According to the U.S. Census Bureau data, nationwide senior citizens are living off an average median household income of $35,107, which is roughly 57% of the income enjoyed by those in the 45-64 age range.
Most Senior Citizens Underfunded For Retirement
Most financial advisors would recommend that people save enough money so that they can replace 70% of their preretirement income. According to the census data, only Nevada and Hawaii came anywhere close to meeting that goal. Runners up included Arizona, New Mexico, and Florida, where seniors have saved anywhere from 66-68% of their pre retirement income. On the other hand, seniors residing in Massachusetts were much worse off living on only 45% of their pre-retirement income. Other states, where seniors were struggling significantly include North Dakota, Rhode Island, New Jersey and New Hampshire.
Seniors Losing Their Pensions Which Impacts Retirement Income
One of the biggest contributors to low-retirement income, is the loss of pension plans for seniors all across the country. Previously, seniors were able to enjoy the income from their work place pension plans to get them through retirement years. Now-a-days, companies have been forced to cut pensions and have replaced them with 401(k) plans. Many retirees have been forced to rely heavily on Social Security as a primary source of income as a result of the loss of income from pensions.
Social Security Should Not Be The Primary Source OF Retirement Income
In many states around the country, Social Security represents as much as 90% of retirement income for some individuals. This is incredibly sad considering annual payments average only around $14,760/year for seniors to survive on. With the rising costs of healthcare in the latter years of life, Social Security is extremely inadequate to exist as the primary source of income.
Don’t be a retirement statistic:
Rather than falling victim to the plight facing most seniors today, you have the choice to make different and better options in regard to your retirement savings. If a pension plan is no longer an option for you, you may have to look at other retirement options such as a fixed index annuity, or other conservative investments that will guarantee you income during retirement. Speak to a Redhawk Financial Advisor near you today to determine where you are at currently in your retirement savings, and where you need to be before you retire. See to it, you don’t sit back and wait for the future to pass you by. Take your future by the reigns and make your retirement the retirement you’ve always dreamed it would be.