One of the things I find in this turmoil of financial confusion these days, is that very few people have any idea of how much money they will have to live off of when retiring or thinking of retiring.
If you have a good old fashion pension plan, your annual statement will give you an idea of where you are at or should be in a set amount of years. Even though the amount is not set in stone on returns for the most part, at least the employee has an idea.
Today, though, most people are changing jobs more and many companies only have a 401K or no plan at all. Many small business’s today have none at all and they are the largest group of employer’s in our nation.
A neat web site statisticbrain.com/retirement-statistics/ has a great layout of what amount of savings a person will need for either 20 or 30 years of retirement. It’s based on a 6% annualized return and 2% inflation erosion. An example shows that you will need in savings of $833,479 to achieve a $5000 a month income for 20 years or you will need $1,060,751 for $5000 a month for 30 years.
Other statistics on the site such as average length of retirement (18 years) will also make you think a lot!
A good advisor can take a look at your personal financial numbers and help you plan for the future or help allocate funds appropriately and some of those may be through fixed or indexed annuities that have income riders on them and protect your principle. We use a number of tools to help project and analyze your savings and projected savings to help develop a retirement amount of income. Taking in consideration of Qualified and Non- Qualified monies’ is essential to getting the real picture along with any Social Security benefits. It is scary and frustrating as years get closer to Retirement.
A Gallup poll in 2011 reported that 53% polled did not think they would have enough to retire on when it came time to retire.
So yes, it could become a frustrating task to figure out how to live off of the money you have saved and make it last.
Several other questions should be, what about if I die first, what will my spouse live off of? What if I need home or long term care? These are just a few to also consider.
Making your dollars stretch and receive lifetime income off of an annuity is the great advantage of a solid plan and using annuities to achieve those goals. Life time Income riders can guarantee money every month till death.
Your goal should be to achieve maximum pay out on your money for the rest of your life. Determining income should not be frustrating, but it will be if you have not saved enough or planned a head of time. Don’t be frustrated take action!
To learn more from this educator, click here (Chris Raup).
P.S. – Please share this article with others by simply clicking on the blue social media icons at the top of your screen!
Annuity123 does not offer insurance, investment, or tax advice. You should always seek the guidance of qualified and licensed professionals concerning your personal insurance, investment, or tax matters. Annuity123 is simply a platform allowing retirement planning professionals to help educate the community on various retirement planning topics. Annuity123 does not directly support or take responsibility for ensuring the accuracy of the content displayed in the articles themselves or any feedback that may get added in the Comments section from the community.