People have a tendency to put off things that are not immediately relevant, and the reality is that this often results in difficulties later on. Retirement planning is one of the things that falls into this category, with many people being in complete denial about the matter. Others feel as though they will start planning at a later date, and then there are those who simply assume that they’ll have adequate resources when the time comes without engaging in specific planning or goal setting. There are also people who assume that their Social Security benefit will be enough to finance their retirement years.
Let’s take a look at some of the facts. If you are thinking that Social Security is your answer, you may want to reconsider. The average monthly Social Security benefit in 2010 was $1072, and there have been no increases over the last two years. If you have been listening to the buzz coming out of Washington you know that the federal budget deficit is a huge issue and people are talking about making cuts. According to the Center On Budget and Policy Priorities 20% of the federal budget in 2010 was spent on Social Security payouts.
So, it is difficult to talk seriously about reducing the federal budget without Social Security being mentioned. This is especially true given the fact that the roles will be expanding significantly over the next 20 years as 10,000 new applicants apply for Social Security every day.
A recent Harris poll indicates that approximately 25% of baby boomers have saved absolutely nothing for their retirement years. 22% of Americans who have reached the age of 65 have no savings. 44% of baby boomers who responded to an AP-LifeGoesStrong.com said that they are not confident that they will have the financial resources that they need for their retirement years.
When you put all the above together you can see that indeed, people often ignore the need to plan for retirement and when they do they face was some extraordinary challenges late in their lives. The suggestion here would be to take a proactive approach and arrange for a consultation with a retirement planning attorney will help you devise an intelligent plan for the future.