There are various reasons why many Americans do not have enough money saved for retirement. The volatile stock market, disappearance of pensions, and high cost of living are certainly culprits. However, these factors do not explain why 12% of women and 7% of men over age 65 live in poverty or the fact that over half of Americans report having less than $25,000 in savings and investments.
An article recently published by Kimberly Palmer highlights 5 factors which further address the issues above. In order to avoid becoming part of the depressing statistics above, she recommends to avoid the following:
1. Having children without considering or preparing for the resulting financial ramifications
2. Waiting too long to begin saving for retirement
3. Failing to calculate a retirement target
4. Investing too conservatively (for the young) or too aggressively (for those approaching retirement)
5. Failing to anticipate a long life
The overarching theme in the list above is to begin formulating your retirement plan as soon as possible. This plan will of course need to be adjusted over time as your risk profile changes and life changing events occur. Be sure to seek professional guidance from a retirement income specialist to help formulate and assess your retirement plan.
Click here to read the full article described above.