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We all make mistakes, and many of them hurt us one way or another. A 2013 CareerBuilder survey found that 58% of resumes were licensed by companies because of typos. Many people also use a fabric softener in all our loads of laundry when it leaves a layer on the fabric that reduces the absorbency of towels.
Some of our most damaging mistakes are financial mistakes, and 62% of Americans make a huge mistake: not saving even enough for retirement.
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Source of the image: Getty Images.
The table below shows how many older Americans – those about ten years of retirement – have lost their wages. According to the 2018 survey on retirement confidence, 62% of older workers saved less than $ 250,000, an alarming figure. And older people with $ 250,000 (or even $ 350,000) are not much better off.
|
Amount saved for retirement |
Workers aged 55 and over |
|---|---|
|
Less than $ 1,000 |
19% |
|
$ 1,000 to $ 9,999 |
6% |
|
$ 10,000 to $ 24,999 |
3% |
|
$ 25,000 to $ 49,999 |
7% |
|
$ 50,000 to $ 99,999 |
8% |
|
$ 100,000 to $ 249,999 |
19% |
|
$ 250,000 or more |
38% |
Source: 2018 Survey on Confidence in Retirement.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The common (but imperfect) Rule of 4%& nbsp; suggest you withdraw 4% of your capital during your first year of retirement, then adjust the inflation of the following years so that your money lasts 30 years. Under this rule, $ 250,000 would only bring you $ 10,000 in your first year of retirement, and a $ 350,000 account would generate $ 14,000 a year. Most pensioners would have a hard time living a comfortable life with this little money, even with the addition of Social Security benefits. your capital during your first year of retirement, and then correct the inflation of the following years so that your money lasts another 30 years. Under this rule, $ 250,000 would bring you only $ 10,000 in your first year of retirement, and an account of $ 350,000 for $ 14,000 a year. Most pensioners would have a hard time living comfortably with this little money, even with added social security benefits.
The numbers are even worse for young Americans, but it's a lot less worrying because they have plenty of time to start spending money seriously. If a 30 year old man saves and invests only $ 5,000 a year for 35 years and earns an annual average of 8%, this will raise him about $ 930,000! But a 55-year-old woman saving $ 20,000 a year for 10 years will end up with about $ 313,000 under that formula.
|
Amount saved for retirement |
Workers aged 25 to 34 |
|---|---|
|
Less than $ 1,000 |
37% |
|
$ 1,000 to $ 9,999 |
16% |
|
$ 10,000 to $ 24,999 |
ten% |
|
$ 25,000 to $ 49,999 |
13% |
|
$ 50,000 to $ 99,999 |
12% |
|
$ 100,000 to $ 249,999 |
9% |
|
$ 250,000 or more |
4% |
Source: 2018 Survey on Confidence in Retirement.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What to do if your retirement savings are late?"data-reactid =" 34 ">What to do if your retirement savings are late?
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you are among the under-economical, what should First, find an approximate number for & nbsp;how much money you will need in retirement, to evaluate where you are. And if you are really late, rest assured, because there is still time to significantly improve your situation. "Data-reactid =" 35 "> If you are among the under-savers, what should you do? First, calculate an approximate figure for how much money will you need to retire to determine where you are and if you are really late, rest assured, because there is still time to significantly improve your situation.
Here are some steps to take if you are late in saving for retirement:
- Delaying his retirement for a few years. Postponing your retirement for a few years will give you the time to save more and your pocket nest will have to support you for fewer years of retirement. This can also mean that your employer 's health plan will last longer than years, which will save you money. The funds in your retirement accounts will continue to grow, while you will continue to earn a salary later.
- Save more aggressively. No matter how far away you are now, aim for more. Do not just save a certain amount, such as 10% of your income, assuming it will be enough. Crunch the numbers to see how much you really need to save. Better to have more than enough to not be up to it.
- Spend less. There are many ways to reduce expenses and you can probably save $ 100, $ 300 or more on your monthly expenses. Switching from cable television to a streaming service is a start. Reduce lunches and dinners at the restaurant.
- Earn more. You can start by asking for a salary increase or looking for a better paying job. You could learn more, maybe get a certification or designation, to qualify for higher paying jobs. You can also participate in a parallel concert, at least for a few years, to bring more moola.
- Delay to start collecting Social Security if you plan to live longer than the average. The more you wait (up to 70 years, when the bonus to delay is maximum), the more your checks will be big. This strategy is not worth it for those who are likely to have average or below average life. (The average monthly social security pension benefit was recently $ 1,461, by the way.)
It's a big problem if you're far behind your retirement savings, but it's not necessarily insoluble. Learn more, develop a strategy and execute it with some discipline. This could mean the difference between living with $ 25,000 or $ 40,000 a year in retirement.
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