We were so happy to have our Financial Experts, Liz and Selene, give a wonderful presentation at Monday’s meeting. Please enjoy a few highlights from their Presentation on Retirement Planning:
Planning for your retirement is one of the most important financial investments you can make. Planning now will allow you to live the way you want to during retirement. Here’s a few reasons why it’s important to know why savings are needed now, how much money may be needed to meet retirement goals, and some information on issues regarding retirement.
- According to the 2003 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute, 25% of Americans would like to retire by the age of 65.
- According to the 2000 U.S. Census, in the year 2000, 12.4% of the American population was over the age of 65.
- In 2030, it is expected that the current number of Americans over the age of 65 will double what it is today to approximately 70 million people.
- The 2003 Retirement Confidence Survey showed that 29%, or 3 in 10 workers, has not saved a single cent for retirement.
- The same survey shows that one-fourth of workers age 45 and older say that they have changed the age in which they originally planned to retire. Of those who have changed their projected retirement age, 75% decided to retire at an older age than originally anticipated.
- Seven out of ten of today’s workers believe that they will need to work (at least part time) during retirement
- 16 % of American workers feel “not at all confident” that they will have enough money for retirement.
- 24 % of American workers feel they will not have enough money during retirement to pay for long-term care. 19% don’t feel they’ II have enough funds to pay for medical care during retirement.
- Only 24% of American workers are “very confident” that they are doing a good job of preparing financially for retirement.
- The majority of today’s workers continue to be unaware of the phased increase in the Social Security normal retirement age from 65 to 67. (51 % of working Americans believe they will reach retirement age before they actually will.)
For Every $10,000 of Required Retirement Income,
- It takes $167,000 of Capital at a 6% Rate of Return
- It takes $125,000 of Capital at an 8% Rate of Return
- It takes $100,000 of Capital at a 10% Rate of Return
$10,000 Today, Adjusted for 3% Inflation
- $13,400 Needed in 10 Years
- $18,100 Needed in 20 Years
- $24,300 Needed in 30 Years
- $32,600 Needed in 40 Years
What do these facts mean? Although planning for your retirement can be a daunting task, it doesn’t have to be. A financial advisor can help you determine what you need to do to plan for a comfortable retirement.