Retirement Planning Your Nest Egg May Be Bigger Than You Think Mon
Retirement Planning - Your Nest Egg May Be Bigger Than You Think - Mon...
Think long, think strategically to tame your debt and restore financial security.
Annuities with guaranteed benefits are complex and costly.
Start planning now for your ideal retirement.
— Receive access to exclusive information, benefits and discounts. See also:
And we've managed to scare a lot of people. One study from Allianz Life Insurance found that 61 percent of respondents ages 44 through 75 feared an empty bank account more than death itself. Time for some reassurance. Vanguard Center for Retirement Research director Steve Utkus looked at the EBRI data and thinks you . The reason: Studies like EBRI's take a black-and-white approach - either you're ready or you're not. Utkus sees another shade. He says 20 to 30 percent of Americans are "partially ready." Add them to the 55 percent deemed prepared and our national retirement prognosis is less dire. The trick is to get from partially to really ready. How? Find your finish line. According to Allianz, 36 percent of study participants don't know how long their savings will last. Big mistake. Run your numbers with an online calculator. offers one; others include the and Prudential's Retirement Nest Egg Calculator. Save a little more. Don't suddenly boost your saving by 10 to 15 percent. Instead, nudge yourself by saving 2 or 3 percent more, starting now. "That's the amount people can sneak out of their paychecks without noticing," Utkus says. "Two years from now, do it again." Work a little longer. Go to the Ballpark E$timate from the American Savings Education Council and change your retirement age from 65 to 68; you'll see how valuable a few extra years can be. Additional reporting by Arielle O'Shea
How much money will a 65-year-old couple need for unreimbursed health care expenses in retirement? For a decade Fidelity Investments has been projecting this out-of-pocket figure, assuming men live to 82 and women to 85. Except for a downward blip in 2011, it has jumped an average of 6 percent annually, from $160,000 in 2002 to $240,000 this year. That's more than many of us save for our entire retirement.
What can you do about it? New York City financial adviser Gary Schatsky suggests breaking down that big number: Think $12,000 per year per couple for 20 years. If that's too much for you to save, don't let the fact that you can't hit the recommended goal stop you from saving what you can. And in years when you can save a little more? Do that, too. — J.C. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Are You Ready for Retirement
Your nest egg may be bigger than you think
Photo by Christopher Griffin/TrunkArchive.com Don't suddenly boost your saving by 10 to 15 percent. Instead, nudge yourself by saving 2 or 3 percent more. I blame . Well, myself and the rest of the . For years we've warned you to , citing studies such as the Employee Benefit Research Institute's (EBRI's) Retirement Readiness Rating, which states that roughly 45 percent of boomers risk and health care costs.Retirement Savings
Think long, think strategically to tame your debt and restore financial security.
Annuities with guaranteed benefits are complex and costly.
Start planning now for your ideal retirement.
— Receive access to exclusive information, benefits and discounts. See also:
And we've managed to scare a lot of people. One study from Allianz Life Insurance found that 61 percent of respondents ages 44 through 75 feared an empty bank account more than death itself. Time for some reassurance. Vanguard Center for Retirement Research director Steve Utkus looked at the EBRI data and thinks you . The reason: Studies like EBRI's take a black-and-white approach - either you're ready or you're not. Utkus sees another shade. He says 20 to 30 percent of Americans are "partially ready." Add them to the 55 percent deemed prepared and our national retirement prognosis is less dire. The trick is to get from partially to really ready. How? Find your finish line. According to Allianz, 36 percent of study participants don't know how long their savings will last. Big mistake. Run your numbers with an online calculator. offers one; others include the and Prudential's Retirement Nest Egg Calculator. Save a little more. Don't suddenly boost your saving by 10 to 15 percent. Instead, nudge yourself by saving 2 or 3 percent more, starting now. "That's the amount people can sneak out of their paychecks without noticing," Utkus says. "Two years from now, do it again." Work a little longer. Go to the Ballpark E$timate from the American Savings Education Council and change your retirement age from 65 to 68; you'll see how valuable a few extra years can be. Additional reporting by Arielle O'Shea
Retirees' Cash Flow Gap
According to the Employee Benefit Research Institute, retired households spend about 80 percent as much as working households. But they earn only about 57 percent as much.This Might Hurt
Planning for Those Medical ExpensesHow much money will a 65-year-old couple need for unreimbursed health care expenses in retirement? For a decade Fidelity Investments has been projecting this out-of-pocket figure, assuming men live to 82 and women to 85. Except for a downward blip in 2011, it has jumped an average of 6 percent annually, from $160,000 in 2002 to $240,000 this year. That's more than many of us save for our entire retirement.
What can you do about it? New York City financial adviser Gary Schatsky suggests breaking down that big number: Think $12,000 per year per couple for 20 years. If that's too much for you to save, don't let the fact that you can't hit the recommended goal stop you from saving what you can. And in years when you can save a little more? Do that, too. — J.C. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures