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Planning Retirement Essay

734 words - 3 pages

People of all ages should begin planning for retirement and managing their money well so they are ensured enough income when they do retire. Retirees estimate that people will need 71% of their pre-retirement income to maintain their current lifestyles. Stocks and 401(k) plans are recommended.FactsNonretired Americans with household incomes that average more than $50,000 assumes they won't be able to retire until age 59.More than a third of affluent retirees with children and grandchildren are helping to support them financially, as are 29% of all retirees. Also, nearly a quarter of all retirees whose parents are alive are helping them financially.Fully 48% of the affluent who aren't retired as well as of all people surveyed who aren't retired believe they have to work part time in retirement.

Only 23% of well-off retirees and 16% of all retirees polled are working today.Affluent nonretirees estimate they'll need only 53% of their pre-retirement income to support their retirement lifestyles. But well-off retirees say they actually require fully 71%. Fully 25% of affluent nonretirees think it's likely they will run out of money before they die vs. only 12% of well-off retirees.Affluent retirees single biggest regret is failing to put more money in tax-deferred retirees said they invested the maximum the law permits, compared with only 48% of the affluent nonretirees polled.Strategies1.

Figure out how much income you'll need in retirement. Retirees told us that to support their lifestyles they typically require 71% of their pre-retirement income, which is much more than many of them expected while they were employed. In fact, nearly two in five retirees said they're spending more an average of 26% more than they thought they would. Our poll found that nonretirees think that retirement they'll need a mere 53% of their current income.

For most of them, that will not be enough.2. Start saving for retirement early. Retirees second biggest regret is that they didn't begin saving at a younger age. An early start is especially crucial for women, whose financial security late in life lags men's at an alarming rate.3. Make full use of all your tax-advantaged investing options.

Well over half of today's retirees (58%) invested the maximum amount allowed in IRAs, 401(k)s and other tax-deferred...

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