Today’s workers face the future with help from the vast majority of analysts and commentators in the media. They tell us how quickly wages are increasing and how social security is being stretched to the breaking point. They claim every year that more and more seniors will collect benefits at the age of 66 and in the next 25 years that every person eligible for Social Security will see benefits cut by 30 percent.
However, most Americans are completely unaware of the facts or facts that refute these claims. Recent figures from the U.S. Census Bureau show older workers are the fastest growing workforce segment in America. While nearly half of all Americans have no retirement savings, nearly 20 percent of older workers have $50,000 or more in savings. Workers ages 55 to 64 are also living longer than they ever have before. After a lifetime of hustling to contribute to their retirement savings, it’s not fair that they are left out in the cold when it comes to Social Security.
For workers 55 and older, Social Security provides approximately 50 percent of their monthly income, so if cuts are taken, it would leave many in poverty. Research has shown the rich can save up for their retirement years longer than the poor, and with better understanding of how to prepare for the future, older workers can be part of an inclusive retirement.
There is more you can do now to plan for the future. For starters, you can always contribute to a retirement plan. Many employers even match your contributions. Now is the time to invest in your future! There are retirement planning solutions available to each of you, from investing to advice.
But start now. The earlier you start to save for your retirement, the more you will be able to contribute to your plan over the course of a few years. Plus, every year you delay your savings, it costs you more to delay retirement.
One of the best ways to build up your savings is to work! According to the U.S. Bureau of Labor Statistics, more than 21 million workers between the ages of 55 and 64 were employed in 2018. In just a few years, many of these workers will face the retirement savings crunch and will have to change their retirement plans.
With so many other things going on in the workplace, what are you waiting for? Start saving today! Because the sooner you start, the better you’ll be able to save for retirement, and you’ll have a much better chance of avoiding the retiree poverty that so many older workers are facing today.
It is a tough time to plan for your retirement. There’s plenty of talk in the media and in your friends’ and family’s lives that promises your older days will be brighter and the economy will remain strong so you can simply ride it out through your retirement years. But the current economic climate in America is not the one in which many workers would have believed a couple of decades ago. To maintain a comfortable and productive retirement is a luxury many older Americans will have to struggle with.
Many older workers are talking about keeping working and this will help pay for the retirement they have worked hard for their entire lives. But what about the ones who decide to quit work? When you’re looking to retire from your demanding job, your Social Security benefits won’t come close to covering your living expenses. Starting a small business is an option, but with interest rates so low and the small business tax cut gone, many retirees may want to consider more secure sources of retirement income. Many people who lose their job will find that businesses can’t easily afford to stay open. They may find their choices either little or none.
So what’s a retiree to do? While the news always seems to be filled with reports of how difficult it is to make ends meet, the truth is that while you may be living on a lower level of income than you are used to, your Social Security benefits will be a lot better than they would be if you waited to retire. You will also have less money to spend on luxuries, like expensive entertainment. It is important to remain upbeat and positive in your retirement years so that you can keep up with all the challenges that await you and all your coworkers. It is in that spirit that you should look to retire with some money left over, to fund your retirement future.