You don’t have to look very hard to be overwhelmed by the prospect of saving for retirement. You don’t even have to be of a certain age, 20-somethings to 60-somethings, we all feel the anxiety of ensuring a comfortable future (really! we asked and even our interns, Ruth and Jared, have retirement saving on their radar).
Unfortunately, Americans overall have been finding it difficult to meet retirement savings goals and almost half of Americans have no retirement savings at all.[1] Thankfully, most of our clients at TFG are in or on their way to meeting their retirement goals, but the data is still interesting.
Steve Wendel, head of behavioral science at Morningstar, identified two tips to get 72% of Americans retirement ready.
- Save 6% of earnings
- Retire at 67 (instead of 65)
Although I agree with the second recommendation, that many of us either have the financial or emotional need to work longer, the first recommendation is very low, and I believe creates a false sense of security. And ultimately, this is the problem with any rule of thumb. It doesn’t necessarily apply to your situation.
What we have always known here at TFG is that meeting retirement goals should be approached personally and holistically. It isn’t necessarily about squirreling away a fifth of your earnings, putting off retirement to 75, or accepting an income half of your current earnings once you get there. It is about creating a plan for YOU that is sustainable and is based in best practices and the most recent data.
Saving for retirement should be about you and creating a plan that is not only financially feasible but feels fully attainable while addressing your unique needs.
Wendel’s two suggestions take into consideration what is attainable for most people who are saving for retirement. But we look at what is attainable and necessary for you!
We want to remind you that there isn’t just one way to save for your future and that getting advice that takes your individual circumstances into account is what we do best!
We encourage you to contact Taylor Financial Group with any questions you may have. And here’s to a happy and healthy retirement to all of you!
[1] Szala, Ginger. “2 Steps Could Help Most Clients Reach Their Retirement Goals: Morningstar”. ThinkAdvisor.com, 14 June 2018. https://www.thinkadvisor.com/2018/06/14/2-steps-could-help-most-clients-reach-their-retire/?kw=2%20Steps%20Could%20Help%20Most%20Clients%20Reach%20Their%20Retirement%20Goals:%20Morningstar&et=editorial&bu=TA&cn=20180619&src=EMC-Email&pt=RetirementReport. Accessed 11 March 2019.
