Half of Americans Can’t Even Afford One Year of Retirement
Most of us go to work every morning so that one day we won’t have to anymore. We dream of less stress, fewer emails and less time sitting in rush-hour traffic.
But retirement isn’t all golf outings and margaritas on the beach. You still have to juggle medical bills, taxes, daily expenses and more - and it adds quickly.
In fact, according to a recent study, the total cost of retirement has risen to $738,400.
Compare that with the average American’s 401(k) balance - a mere $24,713 - and you can see why headlines everywhere warn of a pending retirement crisis.
But what exactly is causing such a big gap between saving and spending?
First, we are living longer. The Social Security Administration estimates that 1 in 4 seniors will live past 90. And the longer you live, the more money you’ll spend... and the more you’ll need to have saved.
Add to that the fact that healthcare costs, especially for retirees, continue to increase. In 2017, the average cost of healthcare for a 65-year-old couple (not including dental expenses, over-the-counter medication or nursing home care) was $275,000. That was a 6% increase from what the average cost was the previous year and more than a 70% increase from what it was in 2002.
And that’s just for those of us in good health. If you or your spouse has a medical condition - or if you’re part of the 52% of Americans 65 and older who will eventually need long-term care - you can expect to pay more.
The obvious answer to all of this is to just save more, right?
That seems to be easier said than done. The personal savings rate in the U.S. hit 2.4% in December, the lowest it had been since 2005. And what’s even scarier is that more than one-third of Americans have no savings at all.
To put it simply, we are saving less and spending more.
The media, along with a lot of money experts and business leaders, seem to believe that financial ignorance is the reason for our lack of savings. They think we just don’t know how much to stash away - or even how to do it.
But according to a survey by PricewaterhouseCoopers, the majority of people say having too many other expenses - or too much debt - is the reason for not saving for retirement.
So the solution isn’t just saving more... but also making more.
Chief Income Strategist Marc Lichtenfeld understands this better than most (income is his area of expertise, after all). So much so that he wrote a book about it.
You Don’t Have to Drive an Uber in Retirement: How to Maintain Your Lifestyle without Getting a Job or Cutting Corners is the ultimate guide to generating more income - even if you’re already retired - and spending less.
And if you order your copy today, you’ll receive a bonus chapter: “How to Save Money Every Time You Visit the Doctor.”
In it, you’ll learn easy ways to reduce your medical bills by up to 50%, score medication for free, save money and improve your healthcare with an innovative physicians’ service.
Here’s to making sure your golden years stay, well, golden.