For Mark Roberts’ Use”: How do you picture your retirement? Do you see yourself relaxing on a beach somewhere, a tropical drink in hand, listening to the waves crash on the shore? Or are you more the homebody type, preferring to hang out at home enjoying the company of family and friends? Maybe the most exciting thing about retiring is the idea of also retiring your alarm clock!
Whatever your retirement dream happens to be, we hope you get there. But of course, reality will intrude upon your dreams once in a while. Reality means that these things cost money, which is why you’re working so hard to prepare yourself for the next stage of your life.
But just how prepared are you? The people behind the website, GoBankingRates, were curious about that. So they conducted a survey to discover how people are planning to pay for retirement, and the results might surprise you.
- 26 percent will have income from a 401(k) or IRA
- 13 percent hope to live on their Social Security benefits
- 9 percent are relying upon investment income
- 8 percent are accumulating personal savings, such as CDs or savings accounts
- 5 percent are counting on their spouse or another family member
- … and 39 percent answered, “I don’t know”
Yikes! It’s frightening enough that nearly 4 out of 10 people have no idea how they will pay for their retirements. But even among those who have formulated somewhat of a plan, the plan really isn’t the best. It’s never a good idea to rely solely upon Social Security to cover all of your living expenses in retirement. And of course, counting on your spouse or family can be risky business for many reasons.
That actually leaves a minority of us who are adequately preparing for retirement. The main thing we want you to remember is that establishing more than one form of retirement income is a very good idea. Even if you expect to draw a decent-sized Social Security check, you need your own savings or investment income. If your employer provides a pension, great, but stash your own money in an IRA or some other retirement income vehicle too.
If you’re confused about the many different retirement planning opportunities available to you, give us a call. We can help you sort through your options, and select the ones that best suit your financial needs and abilities.