This year has been dark and stormy. The bad news is that our retirement savings, except from time to time (our situation is in our budgets), are checked by a violent flurry of new economic surprises that sweep through the markets. It rattled along, making it violently agitated. The flame of a meager retirement fund fighting a darkening economy.
And you thought this maligned opening line couldn’t get any worse? Sorry.
The truth is, no matter how you write it, managing money can be scary. But the truth is, financial news is almost always full of scary statistics. The future is unpredictable and can be scary. But scary facts and alarming headlines aren’t necessarily your reality.
If you’re a reader of this blog, you’ve probably planned for multiple scary scenarios and are ready to retire without fear.
That being said, here are the 13 scariest retirement statistics. We’ll also show you how to plan for retirement so you can safely turn off the lights on your career and avoid what happens on retirement night.
1. Millions cannot protect you from financial goblins
Do you have $1 million in the bank? 3 million? Do you think that means you are fully prepared for a fear-free future? If you have this much money and still feel afraid? is not alone.
research According to research from Natixis Investment Partners, billionaires are about as likely (35%) as investors overall (40%) to say it takes a miracle to achieve a secure retirement. It was almost the same. One of the main reasons is that $1 million may not be as important as it once was.
The report found that the same concerns apply regardless of savings level, including inflation, interest rates, concerns about Social Security and Medicare, and stock market returns.
Here are two tips to know if you have enough.
- Forecast your future expenses in as much detail as possible to determine how much you actually need. It could be a million dollars. Or you may need much more or less.
- Be prepared for all risks to your financial security, including inflation, early unemployment, economic turmoil, major medical emergencies, and overpaying in taxes.
Boldin Retirement Planner can help guide you through these tasks.
2. Saving too much can prevent you from living the life you want.
Two of the most popular articles on this blog this year are about people who save too much. Believe it or not, oversaving is a big problem.
When you save too much and delay retirement, you’re trading in years of your life spent doing what you want to do for additional retirement security. And that’s pretty scary. This is a fair trade-off, but it’s important to be mindful of your choices.
3. No, no! Don’t open the door!
Have you ever watched a scary movie and urged the characters on screen to make a different decision, not to open the door, not to go out at night, just not to beg?
Well, similar poor decisions are being made in today’s difficult economic climate. recent data Studies suggest that 61% of Millennials are likely to sell some or all of their assets if market indexes decline by 10% or more. A small but still surprising number of older people say they will sell their assets if the market declines. 35% of Gen Xers and 25% of baby boomers would do the same.
Hmm…please stop!
If you don’t absolutely need the cash, selling at a down market only guarantees you a financial loss. If you don’t sell, you can almost certainly recover and grow your savings.
Buy cheap. sell high. If stock is low, please wait as long as possible. The market has always rebounded and grown below previous highs. be patient.
Want to know more?Here are the 22 dumbest financial decisions you’ll ever make.
4. For Millennials, monsters are everywhere, not just under the bed.
Millennials have the worst prospects for retirement, according to a report from the Wharton School’s Pension Research Council. Researchers found that if planned Social Security payments were paid in full, 38% of early Millennials would not have enough income at age 70, based on a 75% replacement rate sufficiency threshold. By contrast, it estimates that 28% of adults born between 1937 and 1945 are inadequate.
This data shows that the problem is multifaceted, with median incomes for millennial men stagnating, marriage and homeownership rates declining, and debt levels and out-of-pocket health care costs increasing for this generation. Suggests.
To make matters worse, everyone faces a dizzying kaleidoscope of financial pressures in midlife. The combination of buying a home, raising children, aging parents, and maintaining a lifestyle for the Jones family has increased their income and made it extremely difficult to save for the future.
Maintaining a budget and planning for the future can help alleviate these pressures. When things feel overwhelming, it’s important to focus on what you can control. Take control of your finances with Boldin Retirement Planner.
5. Norman Bates’ mother, an older woman, has every reason to be angry.
Although women live longer than men, they earn less over their lifetime and are less likely to receive or receive retirement benefits. The result is 13.2% 8.8 percent of women over 75 live in poverty, compared to 8.8 percent of men of the same age.
If you’re married, you and your spouse need to plan for your own financial well-being. Review your financial plans together to ensure that the other person’s savings and income will be sufficient after one of you passes away. If you’re a single woman, it’s important to make the strongest possible plans for your future.
Now is a great time to use the Boldin Retirement Planner with your spouse to make sure your plans are aligned.
6. Boo! Retirement may sneak up on you and grab you before you’re ready.
Many people plan to continue working past the traditional retirement age. And if you love your job, delaying retirement is a great way to continue saving into retirement.
However, according to the EBRI report, almost half (47%) of retirees left their jobs earlier than planned. And the majority (two-thirds) of that group say they left their job for reasons beyond their control. Reasons include health issues, company downsizing, or the need to change jobs.
Being forced to retire before you’re ready is a real pain. If you haven’t retired yet, be sure to run a retirement scenario where you retire sooner than expected. Consider ways to pay for this extra retirement expense or fill your retirement years. Common options include:
- Tap into savings before starting Social Security
- Utilization of housing assets
- reducing expenses
- Securing a full-time or part-time post-retirement job
7. There is no insolvency: it needs to be faced.
You might think you won’t have to worry about debt in retirement, but that’s not necessarily the case. A study by American Financing found that 44% of retirees still have a mortgage. And the number of people over 60 with credit card, medical bills, and student loans is increasing.
Debt isn’t necessarily scary, but not having a repayment plan can put a strain on your finances, and the effects only get worse over time.
This short and funny horror film shows how debt can cause the same emotional and psychological horror as other movie villains.
Try out what-if scenarios regarding your debt using the Boldin Retirement Planner. See what your future net worth will look like if you pay a little bit each month. What would happen if you consolidated your debt into one with a lower interest rate?
I didn’t try to make this fact into a creepy headline either. This statistic alone is scary enough. One in four American workers has zero savings. This means that they are unable to cope with financial events, let alone prepare for a secure retirement.
And even if people have savings, it is hardly enough. Thirty percent of Americans between the ages of 55 and 67 have less than $10,000 saved for retirement, according to research from Sagewell Financial.
According to Vanguard’s “How America Saves 2024” reportthe median retirement balance for savers between the ages of 55 and 64 is $87,571. The median is the middle value. In other words, half of that group saved less than $87,571. And that’s not enough for most families.
9. I don’t want to misunderstand my retirement.
According to Schroeder’s Retirement Readiness Report, 20% of people who have already retired are experiencing financial hardship.
This shows that at least one in five people plan their retirement incorrectly and have fewer options to improve their financial situation once they retire.
Creating a detailed financial plan and developing good financial habits before you retire are the keys to a healthy, happy, and well-off future. (We’re here to help. Get started with the Boldin Retirement Planner.)
10. Health is precious and expensive to maintain.
Retirees in the United States may think that Medicare will cover all their medical costs. But that’s not true. And these costs typically rise at a higher rate than general inflation.
In fact, research shows that a 65-year-old retiring in 2024 will likely need an estimated average of $165,000 in retirement savings to cover health care costs in retirement. Fidelity Investments.
Get a personalized lifetime medical out-of-pocket estimate (and evaluate plans to cover your long-term care needs) using the Boldin Retirement Planner.
11. Medicare and Social Security are in trouble.
It’s really bad when a rescue team is thwarted in a horror movie. It almost makes you give up hope on the main character. And it’s similar to the situation with Medicare and Social Security.
The money pumped into Social Security through payroll will soon not be enough to cover the benefits being paid. And benefits may be cut due to program deficiencies.
Nearly three in four workers (73%) agree with the statement, “I’m worried that I won’t have Social Security benefits when I’m ready to retire,” including 32%. of respondents said they “strongly agree,” and 41% said they “somewhat agree.” agree. “Concerns about the future of Social Security vary by employment type. Full-time workers are significantly more likely to be concerned than part-time workers.
Learn more about the issues facing Medicare and Social Security…
12. It’s not the devil you know…
The truly frightening pitfalls of scary movies come not from what you know is going to get you, but from complete surprise.
In financial planning, it’s not the devil you know, it’s the devil you don’t know. That’s why it’s always a good idea to plan for things you know won’t go well and to always have some emergency cash on hand to protect you if something unexpected happens in the future. However, only 25% of Americans have enough savings to cover six months of income.
13. Alone in the Dark is not a place you want to be
You don’t and shouldn’t plan your financial future alone. Financial intelligence is low across all demographics in the United States, so we recommend getting professional guidance or a second opinion.
Here are three resources from Boldin to help you stay on top of your finances.
Boldin Retirement Planner: This powerful tool can guide you step by step to more wealth and security. Gain confidence that you can create the life you want by taking control of your financial plan.
Boldin Advisor: Boldin Advisors offers access to the CERTIFIED FINANCIAL PLANNER™ for a fee. Receive advice from and work with a retirement advisor who has taken the fiduciary oath to: set up Free discovery session with Boldin Advisors.
Boldin classroom: Boldin offers daily classes to help you get the most out of your money and time.
Updated October 24, 2024
