Chances Are You’re Underprepared for Retirement

“The question isn’t at what age I want to retire, it’s at what income.” – George Foreman

The former heavyweight champ is on to something here.

Because when you break down retirement planning, the most important thing you need to know is Social Security likely will not see you all the way through. No surprise there.

We’ve all been sold on the myth. Work hard to retire early. Enjoy the twilight of our lives playing instead of working, relaxing instead of stressing.

The myth continues: We collect our Social Security and live off withdraws from decades of gains piled up in our 401k accounts.

Problem is, up to two-thirds of Americans who do have 401k’s aren’t funding them, according to Bloomberg. And millions more don’t have a retirement account of any kind.

Even worse, the average Social Security monthly benefit is $1,180.

No exposure to stock gains for the average American plus an average Social Security check of $1,180 isn’t a pretty picture of retirement.

“I can’t afford to retire.” If you’ve ever heard anyone say that or said it yourself, the paragraph above is why. Millions of Americans aren’t even close to prepared to step away from working.

Ask any financial expert about the realities of living solely off Social Security and they will tell you plainly, “You’re better off financially the later you begin claiming social security.”

But not just for financial reasons, either.

New studies from Cornell University and the University of Melbourne found there’s a “striking correlation between Social Security claims for early takers and a jump in mortality.”

Approximately 33% of Americans begin claiming retirement benefits at the age of 62.

The simple point is it’s most likely in your best interest to delay taking Social Security for as long as you possibly can.

Of course each person’s unique retirement situation is different.

Maybe you’re well ahead of the game. But before you pat yourself on the back for a retirement well planned, consider this:

Even with a $1 million nest egg tucked away, there’s little guarantee that’ll be enough.

What’s really scary however is most people have just 10% or less of that:

Unprepared Retirement

It’s important to ask yourself:

How will my nest egg actually grow? How much additional income will this nest egg generate throughout my retirement?

If you can’t answer this question it’s time to think how much you’ve really planned for the latter stages of life. We’ll have more on this topic in the weeks ahead.

Now, turning to the markets this morning…

Market Rundown for Fri., December 22

S&P 500 futures are up slightly at 2,690.

Oil’s off a bit at $58.05.

Gold’s slowly rising in December, up to $1,272.

Bitcoin continues to slide, now at $12,890. Buy the dip?

Again, have a great holiday. We’ll talk again on Wednesday, December 27.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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