How Will You Pay for Retirement?

Retirement

How Will You Pay for Retirement?

Posted by RDW Financial Group
2 months ago | August 14, 2017

When you retire, you’ll escape your desk, your alarm clock, your boss, and a stressful daily schedule. But there’s one thing none of us can escape: Bills!

We all have to live somewhere. We all have to eat, and it’s safe to assume that you expect to maintain your current lifestyle once you enter retirement. Of course, all of that costs money. So how will you pay for retirement?

GoBankingRates was curious about that, too. So they performed a survey to discover how working Americans are planning to cover their living expenses once they retire. The results were surprising, and in some cases, alarming:

  • 26 percent will rely upon a 401(k) or IRA
  • 13 percent expect to live on their Social Security benefits
  • 9 percent are counting on investment income
  • 8 percent have personal savings, such as a CD or savings account
  • 5 percent are relying upon their spouse or another family member
  • … and a whopping 39 percent answered, “I don’t know”

Not only is it alarming that 39 percent of us don’t know how we will pay for retirement; it’s really not a good idea to rely upon Social Security, either (as 13 percent are doing). And of course, relying upon family can be shaky territory. That leaves a minority of us who are actually preparing for our retirement years.

So, we know what you shouldn’t do (leave it up to fate, rely on others, or rely on Social Security). But what should you be doing to prepare for retirement? Ideally, you will establish more than one source of income. If your employer offers a pension, you should still save your own money (via an IRA, for example). If you’re already contributing the maximum to a 401(k) plan, you’re a bit ahead of the game, but still consider other options such as IRAs or annuities.

With many people expected to live 20 or more years after retirement, this is not an issue any of us should take lightly. If you’re not sure how you will pay for retirement, or you aren’t sure whether your income will be adequate, give us a call. We can help you evaluate your plan, and make recommendations for a more stable future.

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