Americans are living longer, retiring later, and are expected to have less help from Social Security. Xiggit's payroll deduction IRA can help you and your employees be prepared.
According to a recent Gallup poll, the average retirement age for Americans is 66. That is up from age 60 in the 1990s. The average lifespan in America is 78.7 years. That leaves about 12 years to enjoy a slower pace of life. What if there was a way to extend your retirement, even if only by a few years? One of our favorite sayings at Xiggit is, "The best time to plant a tree was 20 years ago. The second best time is now." The sooner you start saving for retirement, even if it is a small amount, the sooner you'll be prepared to enjoy the slow-paced retirement you deserve.
Young people think they will retire much earlier than they will
When 18- to 29-year-olds were interviewed in a recent Gallup poll about retirement, they expressed optimism that they'd be able to retire in their early 60s. That optimism wanes as people enter their 30s and the reality of adulting begins to catch up with them.
The average lifespan is increasing - will you be prepared?
While the average lifespan is 78.7 years, many Americans live well into their 80s or 90s. In reality, a healthier 65-year-old woman has a very good chance of living to age 86, and a 65-year-old man has a good chance of living to age 84. While the numbers say you should plan on enjoying 12 years in retirement, you should probably prepare for 20 years or more.
Don't be tempted to access retirement funds early
There is a growing trend of Americans dipping Into their retirement funds early. A TD Ameritrade survey showed that 44% of Americans 40 to 79 have taken an early disbursement. Financial experts strongly advise against this - taking money out of a retirement plan early can come with financial penalties.
Almost 1/3 of Americans don't have a retirement plan
According to a TransAmerica Center survey, 77% of American workers are saving through an employer-sponsored retirement plan, and they typically begin saving at age 27. That leaves 33% of working Americans without any retirement plan at all.
Don't plan on Social Security being available
The current Social Security plan is only guaranteed to be funded until 2035. After that time, expectations are that it will only be three-quarters funded. This is mainly because the number of eligible Americans (those age 65 and older) will grow from 56 million today to more than 78 million. This means that more people will pull money from Social Security while fewer people will pay into it.
You'll need more than you think
While every individual is different, experts suggest that you need between $500,000 and $1 million saved to be prepared to finance your retirement. While that seems to be a daunting amount, it's completely achievable if you start saving today.
Xiggit can help!
Xiggit's payroll deduction IRA can help you and your employees be prepared for the retired life that we all deserve. Saving just 5% per paycheck is just $5 for every $100 you earn. The best part? It's all completely automated. Our plans are $5/month for individuals and $10/employee for employers. Want to learn more? We'd love to hear your thoughts!