Will I Be Able To Retire-Ever?
When is the best time to think, plan and prepare a retirement account?
How much will you need to retire? Do you have a retirement plan?
You can start collecting social security at 62 years old but you will only get about 75% of your full allocation. You would have to wait to at least 66 years old to collect 100% of your full allocation.
According to a 2012 survey on retirement:
“the majority of workers in their Fifties and Sixties plan to work after they retire, with 52% reporting that they plan to work part-time and about 9% reporting that they plan to work full-time. Fewer than one in five workers (19 percent) do not plan to work after they retire.”
The bigger question should be; will you financially capable of not working or will you have to work because you cannot afford not to work?
According to the 2012 Census Bureau
Out of 100 people who starts working at the age of 25, by the age 65:
- Will be considered wealthy 1%
- Have adequate capital stowed away for retirement 4%
- Will still be working 3%
- Are dependant on Social Security, friends, relatives or charity 63%
- Are dead 29%
One of the biggest mistakes you can make in your retirement preparing is to start planning when you are near retirement age. If you hope to retire at 60 and you don’t start preparing a “nest egg” until you are 55, you will not have nearly enough money as if you had begun when you was 25 or 35.
By starting early, you can save up a small amount each month into an IRA, your company’s 401k, Roth IRA or some other retirement plan. At that point let that cash continue to accumulate and grow interest, before you know it you are sitting on fairly sizable nest egg.
To retire comfortably you should have several sources of income: a pension; a personal retirement account like 401k; Social Security and personal savings.
The Employee Benefit Research Institute (EBRI) report of March 2011 has interesting research on the state of retirees and the amount of money they will need to retire.
The figure that stuck out to me was that 83% of retirees have less than $250,000 in savings and investments (or that only 17% have more than $250,000). The median of retirement savings is $150,000. Using the 4% safe withdrawal rate, see my previous posts on this topic if you’re not familiar with it, for these savings means that only 17% of retirees can safely withdraw $10,000 per year, or $833 per month, to pay for expenses. And only 50% of retirees can withdraw $6,000 per year, or $500 per month, safely. And maybe the scariest figure is that almost 30% of retirees have less than $1,000 in assets. At first glance this is rather shocking. Obviously, that is not enough cover most retiree’s basic lifestyles not to mention their desired lifestyles.
Another way to have a great retirement is to have a residual income from an internet business, multilevel marketing company or affiliate program. This way you will have people working for you and building your business. Investing time and effort now could set up an extraordinary retirement plan.
There are hundreds of ways to make money on the internet, find one that best fits you.
In summary, start a retirement plan as soon as you can. Notice that 63% of 65 year olds are dependent on Social Security, friends, relatives or charity. Have a retirement Plan B: build a network marketing business with a residual income.
He/She Who Fails To Plan, Plans To Fail.
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