Retirement Planning Helps Secure Financial Stability In Retirement Years
For many working Americans, retirement is highly sought after. It’s assumed by many that if they put in their time, they’ll be able to enjoy their older years in blissful, relaxing retirement. Unfortunately, far too few Americans are consulting with investment firms and retirement planners to ensure that they’ll actually be able to afford retirement one day. Far too many Americans are approaching their older years with little to nothing saved for retirement, and no plan. In fact, studies suggest that only one in five working Americans near the age to retire have absolutely nothing saved for retirement. So when is the right time to begin consulting with investment firms and retirement planners to make sure retirement is possible? The answer is now, or as soon as you get that first job out of college.
Though retirement planners suggest that younger adults should begin planning for retirement as soon as they get their first job, a staggering number of young adults about 41%, between the ages of 18 and 29, haven’t even thought about retirement planning. Many think of it as one of those things to tackle later in life, that they have time to deal with things like retirement planning when they’re older. What few young adults realize is that the sooner they start saving, the more of a nest egg they’ll have when they go to retire.
Fortunately, there is a healthy handful of Americans saving for retirement in some capacity. Of the civilian workforce, about 53% participates or contributes to a retirement plan, while an estimated 80% of government workers working full-time at least have access to employer-sponsored plans. Of that 80%, 80% actually participate in a retirement plan. The most common retirement plan among working Americans are contribution plans, like the traditional 401(k) or 403(b). However, many of the 401(k)’s out there, about 75%, have balances less than the recommended average, which is $60,000.
So while it’s great that about half of the working populating is saving for retirement, even those who are may not be saving enough. This could lead to financial instability in later years for many Americans. And when you consider the fact that, by 2050, about 20.9% of the total population will be over the age of 65, this could be a problem. Even today the number of people entering retirement age is soaring. An estimated 10,000 baby boomers enter retirement every day, many of whom aren’t financially prepared for retirement.
Financial security is a main concern for so many people nearing retirement, especially since social security and other benefits often don’t even begin to cover living expenses. That’s why it’s so important to take the proper steps when younger by consulting with investment firms, financial planners, and retirement planners, so that financial security won’t be a cause for concern in the older years. So if you’re not already saving for retirement, it might be time to schedule an appointment with an investment advisor to discuss your financial opportunities and retirement.