• Question
  • Not prepared for retirement. Don't know what to do.

    Asked by a 62 year old woman from Sacramento, CA on 10/14/2012

    Not prepared for retirement. Don't know what to do.

  • Categories: Retirement Planning, How Much Do I Need?


  • Editorial 


    San Francisco, CA

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  • Well... believe it or not, you are now more prepared than most Americans. As you might have noticed in the NewRetirement Calculator, studies show that only 44 percent of Americans have tried to calculate how much they need for retirement.

    So, to start, we hope that you found the calculator results useful.

    The first step to figuring out your retirement is to assess how much income you will absolutely require as you age. If Social Security and other lifetime income sources like pensions do not cover your basic retirement expenses, then this is where you will want to focus your efforts. Pricing a lifetime annuity can give you a good idea of how much you should have saved to guarantee a certain amount of monthly income. You can estimate the cost of monthly income here:
    --> https://www.newretirement.com/annuity-marketplace.aspx

    With your basic expenses covered, you will also want to make sure that you have saved enough money for out of pocket medical expenses. I don't mean to scare you, but conservative estimates are around $200,000 for the average lifetime out of pocket healthcare cost for a 65 year old couple.

    I do not know your current age or retirement plans, but some of the most effective ways to improve your financial profile for retirement include:

    ----> Delay Retirement: There are three key benefits to delaying retirement. You can: 1) Dramatically increase your monthly Social Security benefits for retirement. 2) Contribute more money to your retirement savings accounts. 3) Reduce the period of time in retirement when you are relying on those savings. Seventy four percent of all households who retire at age 62 fall short of having adequate assets for retirement. Delaying retirement to age 67 dramatically reduces this figure to 47 percent.
    ------------------ More about benefits of working: http://www.newretirement.com/Services/Working_In_Retirement.aspx
    ------------------ More about the benefits of delaying Social Security: http://www.newretirement.com/Services/Social-Security-Benefits.aspx

    -----> Take a Reverse Mortgage: The typical U.S. household approaching retirement has nearly $140,000 in home equity making it the largest asset outside of Social Security. Reverse Mortgages allow those age 62 and older to extract their home equity while remaining in their home.
    ------------------- Estimate your Reverse Mortgage loan amount here: https://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx

    -----> Control Spending: There is more than one way to retire with financial security. Reducing your day to day expenses can be more effective than increasing your assets or income. And, if you cut your budget while still working, you can add those savings to your retirement nest egg for even greater security.

    I hope that this information -- as well as your NewRetirement Calculator results -- is useful to you! We would also be happy to arrange a free retirement consultation with a financial advisor. This expert can walk you through your calculator results and offer more personalized information.https://www.newretirement.com/free-retirement-consultation.aspx

    Please use our retirement resources at any time.

  • Login to rate this answer:   Answered on 10/15/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.