Retirement planning is intimidating, and it’s hard to know where to start. Do you feel like you’re behind? Are you worried that it’s too late to save for retirement?
The fact is, there’s no one right answer when it comes to how much you need to save for retirement. Depending on your age, income, health, and other factors, you may need more or less than the average person.
If you’re not saving adequately for retirement, then you’re setting yourself up for a difficult future. You may have to work longer than you’d like or make significant cuts to your lifestyle in retirement.
If you are a baby boomer, did you save enough for retirement? The answer is dependent on what you mean by “adequate.”
Americans have traditionally relied on Social Security, private pensions, and personal savings to secure their retirement income. This system has served the seniors well Since World War II.
But the future is uncertain. The baby boomer generation has created a long-term imbalance in Social Security. Even if privatization is used, the solution must reduce benefits or raise taxes. Since workers can access their pension funds earlier, the future of private pensions is uncertain. Personal saving has been stagnant for over a decade. Savings account for retirement has virtually vanished.
Baby Boomers are retiring in large numbers. Many do not have enough saved for their retirement. Beyond a lack of planning, a key reason that Baby Boomers lack retirement savings are due to the 2008 financial crisis, the global pandemic as well as chronic low-interest rates.
With an increasing number of Americans retiring each year, there is a greater emphasis on retirement literacy. The time has come for retirees and pre-retirees to gain the knowledge they need to make sound financial decisions in retirement. It is critical to have a plan in place to ensure that you are on track for a secure retirement.
Today my guest is Anne Lester, a former portfolio manager and Head of Retirement Solutions for JPMorgan Asset Management’s Solutions group – retired in 2020.
Anne Lester is a former portfolio manager and Head of Retirement Solutions for JPMorgan Asset Management’s Solutions group – retired in 2020. She is on a mission to help Americans, particularly those in their 20s and 30s, understand that it is possible for them to achieve a happy retirement, ON THEIR TIME AND TARGET.
Anne continues to be a regular commentator on an array of retirement issues for consumers, industry, and public policy.
She is also working on a book that will help younger savers understand how to overcome their own behavioral biases when it comes to preparing for retirement.
Visit Anne Lester on LinkedIn: https://www.linkedin.com/in/savesmartwanne/
Save Smart. Win Your Way: https://annelester.com/