The three main mistakes that people make when planning for retirement are:
- Not saving enough
- Not guaranteeing enough income for retirement
- Not protecting their retirement assets
While not guaranteeing your retirement income or effectively protecting your retirement assets
are serious problems – they are only issues if you actually have adequate savings.
Though many people think that they have adequate resources for retirement, few actually do.
"America appears to be a nation of optimists when it comes to retirement, but for some
people the retirement dream may turn into a nightmare," said Dallas Salisbury, president
and CEO of the Employee Benefit Research Institute (ERBI) which recently conducted a
retirement survey in conjunction with the American Savings Education Council and
Mathew Greenwald & Associates.
The report found that 45 percent of all U.S. households have less than $25,000 in assets
excluding their home), yet two-thirds of all workers expect to live as comfortably in
retirement as they did when they worked. The reality is that the average person would use
up that $25,000 in two or three years – even with their Social Security benefits.
According to the report:
Ten percent of workers believe they will need less than 50 percent of
their current income to live comfortably.
Twenty-eight percent think that they will need 50-70 percent
of their income to live comfortably.
Both groups are terribly WRONG! Most financial experts say you will need between
70-80 percent of your employment income to live comfortably.
So, if you currently earn $50,000 a year and expect to live in retirement for 15 years,
you require (depending on how your assets are held and how inflation performs) -- at the
very least -- well over $500,000 in retirement assets. And, that figure could be much
higher depending on your health care requirements.
If you haven't already, visit the NewRetirement
to help evaluate your retirement plan. Or, if you think your retirement plan is insufficient, explore these solutions: