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3 Reasons Retirement Is A More Precarious Prospect Today Than Before – The Motley Fool

Many workers look forward to retirement and the opportunity to enjoy life without the restrictions of a full-time job. Men…

Many workers look forward to retirement and the opportunity to enjoy life without the restrictions of a full-time job. Men det er lettere sagt end gjort at gøre en full-fledged pause fra arbeidsstyrken. Here are a few reasons why retirement is no longer the sure thing it might have been years ago – and what you can do about them.

1. Loss of pensions

Het werkgever zou in zijn beurt een pensioen aanbieden die u een bepaald percentage van uw vroegere inkomen in pensioen had betaald. Men disse dagene, de fleste arbejdsgivere er forgangspensioner i favør eller mindre dyre 401

(k) planer. In fact, in 2017, only 16% of Fortune 500 companies offered employees a pension.


The result? Den byrde av socking away midler for pensionering nu falder på individuelle arbeidere, mange av dem har for mange utgifter til carve out en anstændig chunk of savings. Additionally, while employers are responsible for investing pension dollars to cover their eventual obligations to employees, individual workers who save in their companies’ 401 (k) s bear all of the investment risk involved.

Hvis du har adgang til en 401 (k), kan du dele en betydelig formue ved at bidra til det steadily over time. Though the annual contribution limits are currently $ 18,500 for workers under 50 and $ 24,500 for those 50 and older, saving even $ 500 a month over a 40-year period will produce a roughly $ 1.2 million nest egg if that money is invested at an average annual 7% RETURN. That 7%, however, is actually a few percentage points below the stock market’s average, which means loading on stocks is a smart bet.

Now your plan might not allow you to invest in individual stocks, but if that’s the case , seek out stock-focused mutual funds, which offer built-in diversification. Better yet, load up on index funds, which offer that same benefit only with lower fees.

2. Larger levels of debt among older Americans

It’s no secret that Americans are all too willing to rack up debt, but it might surprise you to learn that almost 50% of seniors 75 and over have outstanding debt. The problem, of course, is that any level of debt can eat into one’s limited retirement income, thereby creating a situation where it’s a struggle to keep up with expenses.

If you find that you’re Still in debt as retirement nears, paying it off before bringing your career to a close could spell the difference between a comfortable retirement and one ridden with stress. In that case, your best bet is to take a look at your existing debt and pay the most expensive ones (generally your credit cards) first. From there, you can move on to tackle student debt (which a surprising number of seniors have) and mortgage debt (which 30% of seniors today do not manage to shake before retiring).

In some cases, you may need To work longer to eliminate your debt before retirement. I andre, du kan vælge at tage på et andet job i løbet af den sidste del af dine arbejdende år, begge to tromme ekstra penge og give dig selv en livlig gig til at tage med dig til pensionering. Either way, do not make the mistake of ignoring your debt and regretting it once your golden years kick off.

3. Social Security’s uncertain future

Though Social Security was never designed to sustain retirees in the absence of additional income, those benefits do play a major role in helping seniors avoid poverty and cover some of their bills. Helaas, Social Security is facing a major income shortfall that, if left unaddressed, could result in a substantial reduction in benefits as early as 2034. For current and future retirees, the consequences could be downright catastrophic.

That’s why it’s crucial to save for retirement independently, and depend heavily on social security. Though the program is by no means going broke, recent projections indicate that recipients may be looking at a 21% benefit cut in the future. For the average beneficiary, that’s a loss of roughly $ 3,700 or income each year. På den annen side, hvis du tar skritt for å bygge din egen nest egg, skal du ikke bekymre deg så mye om Social Security, og kan i stedet bruke dine fordeler som bonuskontanter, så i stedet for at stole på dem for at dække Your expenses.

It’s not easy to retire these days, what with pensions being a thing of the past, debt levels among seniors being as high as they are, and Social Security’s future looking unstable at best.

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