It's A Simple Fact!
Americans are not saving enough money to retire comfortably!
According to Department of Labor statistics, the average
annual pay of all workers covered by State and Federal Unemployment Insurance
(UI) programs was $28,945 in 1996.
If a husband and wife aged 35 are earning the national
average ($57,890) and want to retire at age 65, they would have to save $473+ a
month or $5,680 a year just to live on 75% of what they they are making now. They
would have to save almost 10% of their pre-tax income!
The savings amount is based upon husband and wife both
working and making the national average and contributing $2,000 each to an IRA
earning 10% a year (the long term average return on stocks). The remaining
balance of $1,680 would be deposited into a bank account earning 4%. For
calculation purposes, the inflation rate is 4% and the average annual wage
increase is 4%.
Realistically, what options does this couple have?
Both work?
Never retire?
Get a better job?
Reduce current spending and standard of living?
Find another source of income?
Are YOU saving enough?
Are YOU earning enough to save enough?
Run your own scenarios with different assumptions, interest
rates and rates of returns on savings and investments and see the results. They
will surprise you! They certainly surprised me!
Financial or retirement calculators can be found in any
search engine by typing in "financial calculators" in the search
line. Or visit Yahoo! at http://www.yahoo.com/ and enter "financial
calculators" in the search window.
*****************************************************************************
Article by Glen Palo, Publisher of Achieve USA
Business Journal.
For FREE reports and tools to help you ACHIEVE success,
visit
http://www.achieveusa.com. Subscribe to Glen's FREE Home
Business ezine, mailto: subscribe@achieveusa.com
*****************************************************************************
Return to: Business Reports