INVESTING FOR RETIREMENT
What percentage of workers earn retirement benefits at work?
According to the U.S. Department of Labor, nearly 57% of all workers earn some sort of retirement benefit as a result of their employment. This means that over 40% will have to rely on Social Security benefits, plus whatever savings they manage to put aside for retirement.
What are the most important components to my retirement income that will allow me to enjoy a good retirement?
According to the U.S. Department of Labor, some components that might help you enjoy a relatively comfortable retirement include: income from Social Security, income generated by your employer-based retirement plan benefits and pensions (for some retirees), and income generated by your personal savings and investments. The amount you might have available will depend upon the amount you have saved by the time you retire, the annual return these investments may provide, whether your expenses draw on your principal, and your life expectancy, among many other factors.
Saving enough for retirement so that you can live comfortably takes considerable planning and management of your current income.
What are three common misperceptions about retirement?
Many people feel they have saved and invested enough to enjoy a comfortable retirement. However, most people believe their daily expenses for living will drop during their retirement (they won't), they will be responsible for paying less in taxes (not necessarily), and they will not have any extraordinary health care or family financial expenses during retirement (not necessarily).
At what rate are people retiring in the United States?
Every day, approximately 10,000 people enter retirement. Thirteen percent of all Americans are of retirement age, and this number is expected to jump to 18 percent by 2030, making our need to invest for retirement more important than ever.