Are you financially prepared for Retirement?
Many people have plans of retiring later than they actually do. Because of this, they are unprepared financially retirement Around 28% of workers have less than $1,000 in savings and investments to use for retirement. And 57% have less than $25,000 saved, according to a study by Employee Benefit Research Institute. Many people plan to work much later in their life than anticipated. In the study, 50% of employees left the workforce earlier than they had planned. 60% of these let due to health problems, and 27% of these left due to company downsizing or closure. Shockingly, 67% of employees plan to work during their retirement years. JackDerhei, Employee Benefit Research Institute’s research director claims that “People keep saying, ‘I’m not saving so I’ll plan on retiring much later,’ but often times for reasons they can’t control, people are not able to retire as late as they want.” The bar graph depicted below, displays the averages for expected years to retire. Since 1991, the average age expected to retire has increased, with the highest average being 70 years or older.
While the bar chart below exhibits that the average age that people actually retire is much lower than what they anticipated.
It’s risky to assume that you’re going to procrastinate on saving for retirement. You never know when an event or circumstance may cause you to stop working earlier than expected, so it is important to start saving earlier rather than later. The earlier you start on saving for retirement, the better. It is important to understand how to do the correct calculations to see if you are on track. Here at Pioneer Wealth Management, we serve as your financial fiduciary, and are more than willing to guide you through your retirement plans.