The Social Security Administration tells us that 91 percent of all retirees are totally dependent upon monthly Social Security benefits for their livelihood. The U.S. Census Bureau from 2010 shows that the average person only has assets, including equity in a home, of just $60,000 upon reaching age 65. Considering the average head of household will make $55,000 annually and will probably work at least 40 years, they will earn $2.25 million in their lifetime and end up with less than $60,000 to show for it! In addition, current statistics show the average employee at retirement will only have $14,500 in savings. The amount needed to have an adequate retirement income close to today’s salary is at least $310,000. This number can be argued to be $250,000 or higher — up to $350,00 — but this still leaves a gap so large as to demoralize anyone. Think about only having $14,500 at retirement but needing $300,000 or more! How is it possible to catch up?
This message, while grim, is meant to help you. It IS possible to catch up! Here’s how:
- Create a spending plan (not a budget, you will fail if you fall prey to the budget mentality). If you want to know more about a spending plan, contact me and I will be happy to explain its value to you.
- Track your spending according to that plan so you can get in control of it and have surplus (even if only a little bit at the beginning) to get out of debt and begin saving for the future.
- Create a debt plan that will eliminate ALL your debt in under 10 years (including your mortgage — mortgage being what keeps people from saving for retirement); if you want to know how to create a debt plan that quickly powers down debt, contact me.
Finally, have the courage to see yourself as you really are, how you think, how you make financial decisions. If you have the courage to look into your financial mirror and make the necessary changes, you can create a predictable retirement that will be adequate, even if things seems impossible right now. Contact me for more valuable, no-cost information: peter@moneymastery.com, 801-292-1099.
