Retirement can be the costliest financial goal of your lifetime.
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Inflation continually weakens the value of your money over time.
Inflation is your money’s greatest enemy. Inflation causes the cost of living to rise,
which means your dollars buy less and less over time. Investing can help your money
grow, and combat the effect of inflation.
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You’ll have to rely on yourself more than ever.
As the demands on Social Security outgrow the funds available, this program may be
less secure in the future. In fact, most people already rely far more on their own
savings than Social Security for their retirement income.
According to the Social Security Administration, U.S. Department of Health and Human
Services, Social Security accounts for 38% of the income of all retirees age 65 or older.1
It’s critical to determine how much your retirement may cost.
Of course, individual needs vary greatly but, as a rule of thumb, you may need at least 70%-80% of your annual
pre-tax, pre-retirement income to maintain your lifestyle in retirement. This may be particularly true for at
least the first few years of retirement, when your expenses may be greater as you set up your new lifestyle.
See where you might fit into these three hypothetical financial scenarios:
60% of pre-retirement income: You have little interest in traveling and eating out, no expensive hobbies, and are debt-free.
80% of pre-retirement income: You occasionally travel, eat out, or participate in moderately expensive leisure activities.
You’ve incurred minimal to moderate debt.
100% or more of pre-retirement income: You plan to travel extensively, eat out regularly, and participate in one or more
expensive hobbies. You want to begin a new business. You’ve incurred a moderate to high amount of debt.
Where will that money come from? Many people will rely more on themselves. Company pensions and Social Security alone may not be
enough to support the kind of lifestyle you want.
 |
| Social Security |
39% |
| Employment |
24% |
| Asset Income |
16% |
| Pensions |
18% |
| Other |
3% |
 |
|
|
|
In the past century, life expectancies in the U.S. increased by 62% – that’s almost 30 years. If you’re 55, you can expect to live another 25 years.*
American workers receive an annual Social Security benefits statement showing their benefits along with a
statement of annual earnings. To order one at any time, call the Social Security Administration toll-free at
1-800-772-1213 and request Form SSA 7704, "Request for Personal Earnings and Benefit
Statement." Complete this form, send it back and you will receive a personalized estimate.
Or visit them at http://www.ssa.gov.
Because retirement is such a critical financial goal, many investors rely on some form of investment advice through
a financial adviser. It may help to think of a financial adviser as you would a doctor or lawyer. You automatically
seek professional help for medical or legal matters. Then why not rely on a professional for help in making investment
decisions that can impact the quality of your retirement?
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