You Could Enjoy More Than 18 Years of Retirement
The average life expectancy in the U.S. for someone who is 65 years old today is age 85 for women and 83 for men.
Most elderly Americans rely on Social Security as the major source of their retirement income. Based on 2018 data from the Social Security Administration, in Vermont, the average monthly benefit paid to a retired worker was $1,419.* As you consider your own plans, will just over $1,400 a month, or $17,028 a year, be enough money to comfortably support yourself in retirement?
One way to answer this question is to look at your current lifestyle and the amount of income it requires. Consider how many of your existing expenses you’ll still have to pay in retirement. How many new expenses might you have — particularly ones associated with your medical care? It’s estimated that you will need approximately 80 percent of your current income in retirement to maintain your present standard of living. Chances are that $17,000 a year will not be enough.
If you’re not already saving for retirement, it’s time to start.
Look at where You're Spending Your Money
Most people will agree that it’s a good idea to save money. However, many people struggle with where the money is going to come from to regularly invest in retirement savings. One tool you can use to identify savings dollars is to keep a spending diary. It doesn’t have to be fancy. It may just be a piece of paper you keep in your wallet or purse. Ideally, you should record in your diary for one month. At the very least, maintain a diary for one week and then multiply the amount you spend times four to see what your monthly spending habits are.
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