Are You Ready for Retirement?

Retirement Statistics	Data
Average retirement age	62
Average length of retirement	18 years
Average savings of a 50 year old	$43,797
Total cost for a couple over 65 to pay for medical treatment over a 20 year span	$215,000
Percentage of people ages 30-54 who believe they will not have enough money put away for retirement	80%
Percentage of Americans over 65 who rely completely on Social Security	35%
Percentage of Americans who don’t save anything for retirement	36%
Total Number of Americans who turn 65 per day	6,000
Percentage of population that is 65 years of age or older	13%
Out of 100 people who starts working at the age of 25, by the age 65:
Will be considered wealthy	1%
Have adequate capital stowed away for retirement	4%
Will still be working	3%
Are dependant on Social Security, friends, relatives or charity	63%
Are dead	29%
Americans older than 50 account for:
Percent of all financial assets	77%
Percent of total consumer demand	54%
Prescription drug purchases	77%
All over-the-counter drugs	61%
Auto Sales	47%
All luxury travel purchases	80%

Amount Needed in Savings For Retirement

Monthly income need	Savings Needed for 20 Years	Savings Needed for 30 Years
$1,000	$166,696	$212,150
$2,000	$333,392	$424,300
$3,000	$500,087	$636,450
$4,000	$666,783	$848,601
$5,000	$833,479	$1,060,751
$6,000	$1,000,175	$1,272,901
$7,000	$1,166,871	$1,485,051
$8,000	$1,333,567	$1,697,201
$9,000	$1,500,262	$1,909,351
$10,000	$1,666,958	$2,121,501
The above sums assume your portfolio will earn a 6 percent annualized return during the course of your retirement and endure 2 percent annual inflation erosion.

Looking at the above did you notice: 
Average Savings of a 50 year old is only $43,797
Only 36% of people save for retirement
On the other side of the scale we see that older Americans account for 77% of all financial assets and are responsible for over 1/2 of total consumer demand.  

We are a nation that has a wide disparity between our older adults.  Those who have and those who have not.  It is important to start planning for the future regardless of age today.  As the statistics point out of 100 people who start working at age 25, by the age of 65 only 1% will be considered wealthy.  It is imperative to start having compound interest working for you today to prepare for tomorrow.  

One area of planning that should be investigated is long term care.  California has developed a site that shows different company policies that they have partnered with as well as helping you figure what you could set aside independently to save.  Check it out at The California Partnership for Long Term Care at http://www.dhcs.ca.gov/services/ltc/Pages/CPLTC.aspx





 Source: U.S. Census Bureau, Saperston Companies, Bankrate Research Date: 1.1.2014