The High Costs of Not Planning for Retirement
“Retirement is like a long vacation in Las Vegas. The goal is to enjoy it to the fullest, but not so fully that you run out of money.” – Jonathan Clements
Around 10,000 people retire every day. That equals approximately 3.6 million retirees per year. The current average retirement age is 63, and the average retirement lasts about 18 years. By the way, future retirees believe the age of 61 is the ideal age to retire.
The number one financial concern of those who are working age is running out of money in retirement. Yet, approximately 50% of American households have a retirement savings of $0.00, nor 401(k)s and no IRAs. Nowadays, only 10% of private industry companies off their employees a pension plan.
Social Security Benefits
Despite Social Security being designed to supplement other retirement savings accounts, 22% of married couples and 47% of single retirees depends on their monthly check for 90% of their retirement income. The average monthly retirement benefit from Social Security was recently $1,371. That equates to $16,452 per year in Social Security benefits.
A 65-year-old couple that retires in 2019 will need close to $390,000 to cover healthcare expenses, including Medicare Parts B and D. This doesn’t even include long-term care expenses. The real kicker? The healthier you are, the more healthcare expenses you’ll have due to a longer life.
- Student Loans – 3% of retirees over the age of 65 still have student loans. Altogether, seniors owe $18.3 billion in student debt, up from $2.8 billion in 2005.
- Credit Cards – More than 35% of retired households have credit card debt.
- Mortgages – Over 35% of retirees aged 65 to 74 are still paying on mortgages. We wrote an article titled Should I Get Out of Debt Before I Retire? for more info.
Benefits of Using a Financial Advisor
46% of Americans are just guessing how much money they need for retirement. Want to avoid becoming one of these statistics in retirement? We can help get you on track.
Benefit 1: Happiness & Confidence
According to a recent survey, 66% of those with a financial advisor said they feel financially secure. Compared to 30% who don’t pay for professional help feeling secure. A whopping 85% of respondents who have a financial advisor feel their personal life is headed in the right direction.
Benefit 2: Knowledge to Maximize Benefits
Working with a financial advisor has a positive influence on retirement behaviors including, tax plans to reduce yearly tax bills, improved asset allocation, greater portfolio diversification, and less-speculative investing.
Benefit 3: More Retirement Income
A good financial advisor can increase investor returns by 3.75%.
Want to learn more? Call us at 913-393-1000 or schedule a complimentary consultation below to get started.
Select the office you would like to meet with. We can meet in-person, by virtual meeting, or by phone. Then it’s just two simple steps to schedule a time for your Complimentary Consultation.
Investment advisory services offered through Barber Financial Group, Inc., an SEC Registered Investment Adviser.
The views expressed represent the opinion of Barber Financial Group an SEC Registered Investment Advisor. Information provided is for illustrative purposes only and does not constitute investment, tax, or legal advice. Barber Financial Group does not accept any liability for the use of the information discussed. Consult with a qualified financial, legal, or tax professional prior to taking any action.