This is the second in a two-part email on aging. If you missed part one, please read blog 1 of 2. Credit to Thomas Day through the courtesy of the National Care Planning Council provides provocative information.
Part Two of Two:
The Effect of Inadequate Income and Lack of Savings
According to the Government Accountability Office, an investigative arm of Congress, more than half of Americans will have to rely solely on Social Security benefits. The average Social Security retirement benefit in June 2019 was about $1,470 a month, or about $17,640 a year. But that’s an average. This means Social Security for many recipients is much less – say around $12,000 a year because they took it at an earlier age. The Social Security incomes for a couple might be enough to maintain an adequate lifestyle in retirement, but for single individuals or widows, it is likely not enough to provide more than a meager existence.
The Transamerica Center for Retirement Studies reports that the median retirement savings for Americans in their 60s is $172,000. This is generally far too little money to support a successful retirement. Half of all Americans are above this level and half are below. For the half that are below, savings are even less sufficient to maintain retirement. If these folks are relying entirely on Social Security and have very little savings, they don’t have much of a future to look forward to. The retirement dream of traveling to exotic places, living in expensive retirement communities and golfing for the remainder of their lives is exactly that – an unfulfilled dream.Read More