As a new generation of Americans enters the market and workforce, many are also gearing up to exit. While most adult Americans have a general idea about what goes into building a good foundation for retirement, there may still be a few eclectic facts that may have slipped by. We aim to illuminate some of these facts so you can handle them during your retirement planning.
You might require more than $1 million to retire.
It’s possible that you’ve always dreamed of spending your golden years lounging on the sandy shores. Still, it would be best if you considered the expense of living in your dream retirement house before making a final decision.
Retiring in locations such as Santa Monica or Waikiki may require you to have funds of more than one million dollars if you want to live a comfortable life once you stop working.
Retirees can continue working.
Some people in the United States have realized that retiring only sometimes frees them from all obligations to continue working. According to a survey by MagnifyMoney, 64% of workers claimed they intend to keep working once they retire.
Suppose you haven’t put away enough money for retirement and want to continue contributing to your nest egg; working at least part-time after you retire is an excellent way to do it. It can assist cover any unforeseen bills that may arise and also provide you the opportunity to earn additional income.
It’s possible that not much will come from Social Security.
Social Security plays an essential role in long-term financial planning for the golden years for many retirees. However, on average, a retired person’s Social Security benefit comes to less than $1,600 monthly.
Remember that the age at which you choose to begin receiving Social Security benefits can also significantly impact the amount of your monthly payment. You should do some calculations to determine how much more money you could receive monthly from Social Security if you delay taking it until later in your retirement.
The majority of workers have not set aside any significant funds.
Putting away at least a few hundred thousand dollars to retire may strike some people as overwhelming. According to a recent report by Sagewell Financial, approximately 30% of Americans between the ages of 55 and 67 had less than $10,000 saved for retirement.
In light of this fact, it could be a good idea to sit down with your existing budget and look for methods to put a little extra money into your retirement accounts.
The number of Americans declaring bankruptcy is growing.
Retirees who need more financial planning for their golden years may have to contend with another formidable obstacle: declaring bankruptcy.
According to research conducted by the Consumer Bankruptcy Project in 2018, the percentage of people aged 65 and older who declare bankruptcy has increased by a factor of three since 1991. The study suggests that declining income and rising medical costs could contribute to this surge.