How do you picture your retirement? Often when we ask this question, we receive one of two common responses:
- “I don’t know… I hadn’t really thought about it”
- “I guess I’ll probably stop working around age 65 and enjoy some much-deserved relaxation and fun!”
Obviously, we never want to hear the first answer as it indicates a complete lack of future preparation, but the second answer leaves a lot up in the air too! This person knows that preparing for retirement is important, but they don’t sound overly confident about it. In fact, they seem to be simply assuming that the transition will come easily.
The truth is, the transition into retirement does come somewhat easily for some people, who have spent decades carefully preparing for it. Unfortunately, for many people, a shocking surprise awaits them:
According to current statistics, about one in five Americans over age 65 are still working.
It’s true that some senior citizens continue working, even just on a part-time basis, because they want to. For millions of Americans over 65, this reality is a necessity. They simply cannot afford to retire.
That’s shocking enough, but the ones who are able to work might be the lucky ones, to some degree. Many travel about the country in RVs, taking temporary jobs in vacation towns or through programs like Amazon’s CamperForce program during the holiday season.
That might not sound so terrible, but for those who are no longer physically able to work, Social Security makes up their only income. Nearly 20 percent of Social Security recipients age 65 and older have no other form of income. For 33 percent of recipients, their benefits checks make up 90 percent of their total income. That’s over half of retirees who are relying primarily on Social Security!
Hopefully, you will enter retirement better prepared, but that preparation only comes with years of planning and saving. So remember to schedule regular meetings with us, so that we can stay on top of your retirement plans.