RSS Feed

Archives

  • Categories

    • Archive for the ‘Retirement Readiness Checklist’ Category

    Your 2012 Spending Plan

    Monday, January 16th, 2012

    This new year you may find yourself in a new financial situation. Whether for better or worse, it is important to take the time to assess where you stand and make a spending budget for 2012. (more…)

    Posted in 401K, Budget, Economy, Financial Planner, Reducing Debt, Retirement, Retirement Planning, Retirement Readiness Checklist, Roth IRA, Savings | 2 Comments »

    Not confident about your retirement? You’re not alone!

    Friday, March 18th, 2011

    Popular culture paints an image of retirement as one’s “golden years” spent walking on a beach and playing golf. Sadly, for most Americans, the thought of retirement actually makes them feel anything but relaxed.  Results from the 21st annual Retirement Confidence Survey (RCS), conducted by the nonpartisan Employee Benefit Research Institute (EBRI), show that workers’ pessimism about their retirement is actually deepening. It seems that many of us believe that a comfortable retirement (and definitely that sandy beach!) may not be in our future.

    Some key findings from this survey show that…

    • - More than a quarter (27 percent) of workers now say they are “not at all confident” about retirement, up 5 percentage points from the level measured just one year ago.
    • - The percentage of workers saying they are “very confident” of a comfortable retirement ties with 2009 at 13 percent—the lowest rate ever measured by the RCS.
    • - A third of all Americans (34 percent of workers, 33 percent or retirees) say they had to tap an IRA, 401(k), savings or investment accounts, or had to take a loan against those accounts, in order to pay for basic expenses. However, those who had retirement savings accounts—such as 401(k)s and IRAs—were far less likely to tap their savings than those who did not have these accounts.
    • - The RCS continues to find that many people do not plan or save for retirement. While 59 percent of all workers say they are currently saving for retirement, more than half (56 percent) say they have less than $25,000 in savings and investments, excluding the value of their primary residence and any defined benefit (pension) plans.
    • - A significant number of workers (20 percent) say they now intend to retire later (at an older age) than they had planned. Of those who say they will retire later,  the main reason cited was the poor economy (36 percent), a lack of faith in Social Security or the government (16 percent), a change in employment situation (15 percent), or because they can’t afford to retire (13 percent).
    • - About a third (31 percent) of workers say they will need less than $250,000 to afford a comfortable retirement.
    • - Yet almost half (45 percent) are not too or not at all confident they and their spouse will be able to save as much as they think they need, and 70 percent say they are a little or a lot behind schedule in planning and saving for retirement.
    • - Well over a third (42 percent) say they determined their retirement savings needs by guessing.

    While these results reflect the negative economic and financial climate today, it is never too late to makes changes that can boost your savings and build your confidence for retirement.

    WISER has many helpful tools and fact sheets to put you on the road to a confident retirement today:

    To see the full survey report, visit EBRI’s website at http://www.ebri.org/surveys/rcs/2011/

    · A third of all Americans (34 percent of workers, 33 percent or retirees) say they had to tap an IRA, 401(k), savings or investment accounts, or had to take a loan against those accounts, in order to pay for basic expenses. However, those who had retirement savings accounts—such as 401(k)s and IRAs—were far less likely to tap their savings than those who did not have these accounts.

    Posted in Delaying Retirement, Retirement, Retirement Planning, Retirement Readiness Checklist | Comments »

    Jumping off that High Beam and into Retirement

    Wednesday, August 13th, 2008

    It felt like a long road to retirement for Kerri. Work appeared to consume her life from the moment her career began. Her professional world was flooded with competitors, her work-life balance seemed like a joke. Her job took her from state to state, country to country, mentor to mentor. The working world left her battered and bruised, each professional success paired with a string of injuries. But she worked her way up that ladder of success until she towered above the competition, smiling down at her awe-struck co-workers and peers. Then Keri did something few of us could imagine: she retired. Chose the date, chose the way, chose a whole new life for herself. Goodbye working world. Hello…adolescence?

    That’s right, the heroine of our tale is none other than Kerri Strug, who retired from her successful career as an Olympic gymnast to do what many 18 year old retirees would do: go to college and pledge a sorority. The average woman in the workforce will not have the luxury of choosing when she retires based on her personal and physical needs, and it’s not because she can’t complete a vault. Creating a financial plan for retirement can help you gain some control over when and how you will retire. Though it may be too late to pledge that sorority, having enough retirement savings may help you fulfill your own post-employment dreams. Here are a few questions you can ask yourself to see if you’re ready for retirement. For more information, visit WISER‘s website and check out our “Retirement Income Checklist.”

    1. Have you considered what annual income you will need in retirement?

    Is it 75 percent of what you earn now? It could be more or less than that, depending on your basic needs. Remember that Social Security usually only covers about 40 percent of an average earner’s pre-retirement income.

    2. Have you considered how long you might live in retirement?

    Many people do not realize that retirement can last 20 to 30 years. It is important when planning to assume that you will have a long life in retirement. And the longer you live, the more likely inflation will erode the value of your savings.

    3. Have you considered the cost of Medicare premiums?

    They are automatically deducted from your Social Security check. For 2008, the Medicare premium is $96.40 a month. Also, consider the cost of health insurance outside of Medicare. You may think about purchasing a “Medigap” policy in order to cover healthcare costs that are not included in Medicare coverage.

    4. Have you thought about how you will handle your savings once you retire?

    Remember, if you have saved through a 401(k) type plan, you will be responsible for managing your own money, or hiring someone to help you do it.

    5. Do you know how taxes will affect your retirement income?

    If you receive money from a tax-deferred savings plan such as a 401(k), you will need to pay taxes on the amounts you receive. You also may have to pay taxes on your Social Security benefits.

    Posted in Kerri Strug, Olympics, Retirement Readiness Checklist | Comments »

    WISER

    About Us

    WISER is a nonprofit organization that works to help women, educators and policymakers understand the important issues surrounding women's retirement income. WISER creates a variety of consumer publications including fact sheets, booklets and a quarterly newsletter that explain in easy-to-understand language the complex issues surrounding Social Security, divorce, pay equity, pensions, savings and investments, banking, home-ownership, long-term care and disability insurance.

    Read More