The Wall Street Journal recently published the article “So You Think You’re Ready for Retirement.” It was actually a 20-question quiz to help you determine if you are ready for retirement. Some of the questions were very thought provoking.
Let me share five:
- What multiple of your ending annual salary at age 67 should you aim to save to meet basic income needs at retirement? The answer is eight times salary, and this is a conservative estimate, which assumes life expectancy to age 92. If you are earning $100,000, you will need to accumulate at least $800,000.
- What is the average age at which current retirees say they actually retired—and what is the expected retirement age among current workers? The answers are age 61 for current retirees and age 66 for those still working.
- What percentage of workers plan to continue working in later life—and what percentage have worked after retirement? 69% say they plan to work while 25% have actually worked after retirement.
- What percentage of U.S. households are at risk of not having enough savings to maintain their standard of living in retirement? 53%
- 94% of those surveyed said they think it’s important to talk about their end-of-life care, but only 30% have actually done so. Who will make these decisions when they are no longer able to do so?
The point of all this is that it’s important to plan now while you still have the time and your health to make these important decisions. Reach out to your agent or financial advisor to help guide you through these important decisions.