Planning on retirement: Will you be able afford it?
By Jim Hallisey, Ozark Financial Services/ Rogers
Here's shocking news: Approximately half of all U.S. workers have less than $2000 set aside for retirement.
According to a recent survey, 36% of Americans say they don’t contribute anything to retirement savings. And, 35% over the age of 65 rely almost entirely on Social Security payments to meet their monthly living expenses.
Are you one of those statistics?
According to the Wells Fargo 6th Annual Retirement Fitness Survey, 72% of middle class Americans expect to work through their retirement years. This is the new norm; simply another phase of their work years.
Why?
Only one third of those surveyed had a detailed written retirement plan. Respondents to this survey estimate they will need $300,000 to fund their retirement, but on average have only $20,000. That is quite a disconnect. Even those in the age 50-59 range have only $29,000 saved and anticipate needing to support themselves for 19 years or more after retiring. They expect to withdraw 10% per year.
Can you make that math work? I can't.
A typical rule of thumb of retirement planning would be to withdraw no more than 4% of your nest egg annually; and that is if you are earning a solid 5% per year yield.
Jim Hallisey has served 11 years with Ozark Financial Services helping people prepare to live their hopes, dreams, and goals in retirement. Learn more at www.jimhallisey.com or follow him on Facebook. This article provides general information and is not intended to provide legal or tax advice. Email Jim at jimhallisey@ozarktax.com.
