As retirement age looms, countless Americans are faced with the harsh financial realities of their golden years. In fact, a recent Bankrate survey found that the average American thinks they need about $1.46 million to retire comfortably. This amount, equivalent to just over £1.16 million, illustrates the increasing fear around saving for retirement.
Here in the United States, a modest but adequate retirement is projected to cost about $43,100 per year. For those who are not well-prepared, the reality of being able to maintain a preferred lifestyle can be overwhelming. Increased life expectancies can be overwhelming for people who have not set aside a nest egg for traditional retirement. If not, a big question mark awaits in the future.
Considering the financial picture in the UK gives an entirely different set of dynamics. In the UK, people need around £221 per week in retirement income to avoid just scraping by. UK women face a serious inequality. In turn, they have to work an additional 19 years on average to build up the same pension pot as their male counterparts.
For anyone who may still feel unprepared without enough savings, there are other options. One solution might be to leave your home and move into your adult children’s home. While this decision may deepen the family’s connection, it may lead to bitterness because of the resulting financial strain.
Many express concern over their retirement preparedness. As one person said, “Actually, I haven’t … Oh no, I haven’t planned for my retirement at all!” Given the grim math of retirement savings, many people have a hard time figuring out how much they really need to save to have a secure retirement.
Yet another one said, “That’s fine – I can begin to save. What do I need to have saved, actually?” This second story showcases that readiness to act even in the face of doom and gloom.
Yet the need for smart fiscal planning is more critical than ever. With the right preparation, America’s retirees can continue to age in good health and economic security.
More than a third of people show an overconfidence in government’s role to support retirees. One person went as far as to say, “Thank God, we have such a nice government that really cares for old people.” For many retirees, relying only on government programs won’t be enough.