This Is What Life Without Retirement Savings Looks Like
Many seniors are stuck with lives of never-ending work—a fate that could befall millions in the coming decades.
"CORONA, Calif.—Roberta Gordon never thought she’d still be alive at age 76. She definitely didn’t think she’d still be working. But every Saturday, she goes down to the local grocery store and hands out samples, earning $50 a day, because she needs the money ...
The problem is growing as more Baby Boomers reach retirement age—between 8,000 to 10,000 Americans turn 65 every day, according to Kevin Prindiville, the executive director of Justice in Aging, a nonprofit that addresses senior poverty ..."
ALANA SEMUELS Feb 22, 2018 Source: The Atlantic
The High Cost of Waiting
During the early years, the need for life insurance is at its peak. There are many financial obligations such as young children, new mortgage, car payment, and consumer debt. At this stage, the death of a breadwinner could be devastating. This creates a higher need for life insurance coverage which is "Insurance Reality".
As we age, the insurance need is usually lowered and in most cases, the financial obligations are dramatically reduced. During retirement years the need for getting a lifetime income, without having to work, is at its peak. Proper financial planning will allow the accumulation and distribution of wealth through savings and investments. During retirement years these savings will provide desired lifetime income to maintain the same lifestyle. This is the "Income Reality".
Time is of an essence when it comes to retirement planning. The sooner you start saving, the longer time you will have to get to the retirement age which translates into fewer dollars needed to save monthly.
In order to save 1 million dollars by age 65 you would need:
About 200 dollars if you start in your 20's
About 500 dollars if you start in your 30's
About 1500 dollars if you start in your 40's
About 5000 dollars if you start in your 50's
Why wait and pay the price for it?
Let's plan to avoid the high price of waiting. Time is of an essence so let's use it to our advantage and plan ahead.