What's The Problem?

Why so many people aren't prepared for retirement?

The disturbing news about retirement

Will you be able to support yourself throughout your retirement? If you're like most Americans, the answer is no. An alarming economic problem is looming for future retirees, and it's bigger than you may think.

A few sobering statistics to consider:

  • 95% of people who reach retirement age don't have enough money to retire.
  • A man and a woman, each aged 65, have a 91% chance that at least one partner will live to age 80. There is a 52% chance that at least one partner will live to age 90.
  • American seniors paid an average of $2,968 per month for assisted-living care in 2006. The national cost of a private room in a nursing home is $6,175 per month.
  • According to the Social Security Administration, an individual retiring in 2006 who was eligible for the maximum Social Security benefit would receive only $2,053 per month.

The economy and Social Security

The world economy isn't functioning the way it used to. Because of continued globalization and shifting of jobs overseas, the U.S. middle class is shrinking. Simply put, the rich are getting richer and the poor are getting poorer. You might be living comfortably now, feeling securely in the middle class. But the impact of this economic shift may be devastating to the tax base that supports the government programs that you might be counting on for your retirement.

We all know that Social Security is an iffy proposition at best. In 2015, Social Security is anticipated to begin spending more money than it collects in taxes. According to the Social Security Trustees report, between 2037 and 2075 the program is projected to run annual deficits totaling $30 trillion.

Savings programs, such as 401(k)s and IRAs, are often not enough to support individuals during retirement. When introduced, they were not intended to completely replace pensions. Yet fewer people are eligible for pensions, and many of the pension programs still in place appear to be at increased risk of default.

If you're like many Americans, you are at risk of being left without the means to support yourself at a time in your life when you are no longer able to work.

It's not too late for you to prepare for retirement

By following a disciplined plan for managing your home equity and investing prudently, you have the potential to gain financial security for your family and for your retirement. Contact us to learn how.

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