Did you know that only 10% of the Baby Boomer generation have adequate funds saved for retirement? How about the other, nearly half, who don’t have any form of savings whatsoever?
In recent years, it has become apparent that America’s workforce has trouble squirreling away savings or even planning for a comfortable retirement; but the Insured Retirement Institute’s (IRI) annual study spotlights those struggles for the Boomers who are nearing or already in retirement.
According to the study, which interviewed over 800 individuals between the ages of 56 & 72, just over ten percent of the study’s participants had at least $500,000 secured for retirement.
Though half a million dollars may seem like plenty of money for your Golden Years, our team of financial and retirement experts strongly suggest otherwise and want to highlight the fact that the other 9 out of 10 individuals in this instance don’t even have that amount saved up.
Long story short, with most Americans entering retirement in their early sixties and statistically living to be 85 years old, far too many individuals commit the “7 Deadly Sins” of retirement planning.
Let’s find out if you’ve done it too:
- Neglecting to Save Enough Money (or anything at all)
Shocking as it may seem, a staggering majority of soon-to-be retirees fail to understand the importance of diligently saving throughout the decades leading up to the time they leave the workforce for good. Without a solid financial foundation, retirement will undoubtedly be a hardship, and in some cases, feasibly impossible.
- Poor Retirement Money Management
For the few who have cultivated a stable nest egg of savings, an overwhelming majority fail to establish realistic budgets. According to the same annual IRI study, almost 20% of the Boomers who were interviewed had saved (or at least attempted to save) for retirement — but those funds quickly dwindled away soon after leaving the workforce.
- Failing to Set an Achievable Retirement Savings Goal
Almost as essential as setting retirement spending limits is the need to establish financial savings goals throughout one’s career. Unfortunately for those who feel that they can figure out future financial needs without the industry expertise of a retirement specialist, they often low-ball the funds they’ll need to maintain their lifestyles.
Looking back to the same IRI annual report, nearly half of Boomers neglected to set savings goals whether they had a financial adviser or not.
- Forgetting About Health Costs & Out of Pocket Medical Expenses
As much as we would love to spend our most youthful days under the blissful assumption that we’re immune to the health effects of old age, the fact of the matter is that the vast majority of your retirement savings should be set aside with future healthcare in mind. As of 2018, an average retired couple, in good health standing, will need between $300,000 and $500,000 for health care costs.
- What About the Costs Associated with Long-Term Care?
In addition to geriatric healthcare, it’s crucial that you understand the importance of being able to afford long-term care, whether that be in a lavish retirement community or requiring a live-in medical professional for round-the-clock care. Who will take care of you in the event of a medical emergency that renders you bed-ridden during your retirement? These are the types of questions that you should never wait to ask yourself or your loved ones.
- Setting an Unrealistic Retirement Date
While each of us might gladly enter retirement tomorrow without a cent saved up, chances are slim that tonight’s winning lottery numbers will be ours. By neglecting to begin saving as soon as possible, the only thing getting gambled is the amount of time you’ll be able to enjoy the Golden Years.
- Are Your Family’s Affairs in Order?
The 7th and deadliest of retirement planning sins is the failure to protect one’s family and overall legacy. Without firmly protecting your estate or finances, you’re putting the future of your loved ones in jeopardy. According to the IRI survey, nearly 2 out of 3 Boomers enter retirement with no game plan if they become incapacitated or have end of life arrangments. We feel that it is both unfortunate and irresponsible, and it often puts retirees’ savings at risk.
So…What can you do if you’ve committed any of the 7 Deadly Sins of Retirement?
Don’t worry! With the help of Secure Retirement Strategies, you can be sure that your financial future is in the most capable of hands. Our experts help take the guesswork out of retirement savings and provide clients the peace of mind knowing that their money, and future, are carefully protected.
Moreover, by establishing a Life Insurance Retirement Plan or LIRP with SRS, you’ll not only be able to grow your retirement funds through tax-free, unlimited annual contributions, but more importantly you’ll establish guaranteed means of affording long-term and healthcare costs. With a custom-tailored LIRP from Secure Retirement Strategies, you’ll be provided with the roadmap to a more relaxed retirement, while ensuring the future financial stability of your loved ones.
GIve us a call today or fill out a contact form through our website to schedule a consultation with our team of financial experts to find out more about retirement income planning in Hunterdon County, NJ.