Today is Halloween, but there is more to fear than monsters and ghosts. Here are three scary retirement numbers from The Motley Fool that are keeping Americans awake at night.
This is the average savings rate for Americans in 2017 according to Vanguard. Not only is this number down from the previous 6.9%, but it is well under the recommended annual savings rate. 10-15% is the recommend sweet spot between your 401(k)s, IRAs, and other savings vehicles. Remember that this includes your employers match to your 401(k). If you are not contributing at least up to the match you are throwing away free money.
This is the average monthly Social Security payment received by retirees in 2017. The annual amount adds up to $16,632. Too many Americans rely on Social Security to be the bulk of their retirement income. This is not ideal as the average annual amount is only $4,500 above the national poverty level. Remember that Social Security is meant to SUPPLEMENT your retirement income, so you must plan accordingly.
This is the median retirement savings for families aged 56-61, and perhaps the scariest number of all. This amount is most likely not enough to last in retirement and would require the family to work much longer than expected.
While saving for retirement can be a daunting task, it cannot be ignored. These numbers might scare you but it's not too late. Start saving and take the time to sit down, by yourself or with an advisor, and figure out a plan. At Blue Bell Private Wealth Management we believe in saving and investing for the long term. If you have any questions or would like to learn more about how we help people plan and invest for retirement, please contact one of our advisors. Happy Halloween!
Source: The Motley Fool