Why $144,000 won’t cut it in retirement - Fox Business
Although baby boomers have more money socked away for retirement than millennials and GenXers combined, they still have work to do. According to a recent Transamerica survey, it found the median retirement savings balance among baby boomers is $144,000; which won’t cut in retirement. Why? The Bureau of Labor Statistics reports the average senior on Social Security today collects roughly $18,000 a year in benefits; however, adults aged 65 and over spend about $46,000 annually. To make up for the $28,000 shortfall, that’s where retirement savings come in. If we use the standard 4 percent withdrawal rate, you are left with $5,760 a year in income and combined with about $18,000 in Social Security, that’s less than $2,000 a month to spend. If you are near-retirement with a low savings balance, you still need a plan to make up for it or otherwise, you could risk struggling financially at a time in your life when you deserve much better. All is not lost; the attached article appearing on www.foxbusiness.com explains why $144,000 won’t cut it in retirement and suggests ways on how to compensate for a low retirement savings. Read article here…
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