There has been a lot of press over recent years with regards to the concerns that many officials have when it comes to retirement savings amongst Americans. There are fears that huge numbers of Americans will find themselves in a situation where they can no longer afford to live in the way they have become accustomed to once they retire and in some cases people may struggle just to meet essential day to day costs once they are no longer working and earning a salary.
It is not just officials that are concerned about this matter – a recent study showed that there are many American people who are only too well aware that they are not saving enough money to enable them to enjoy a comfortable retirement. In fact, most Americans are concerned that their retirement funds will not last long enough according to the report.
Tips to help those worried about retirement funds
Figures from the report showed that just over 30 percent of people who were in a retirement plan at work were very confident or extremely confident that their funds would last long enough. The majority of those polled as part of the study believed that they would outlive their funds and would spend part of their retirement seriously struggling when it came to finances.
One of the things that consumers are being advised to do in order to save for the future is to take inflation into account. Those who are planning to retire in twenty years or so will need double the retirement funds of those retiring now according to a report from Wells Fargo. This is something that savers need to take into account if they want to be able to maintain the same standard of living that they have become accustomed to.
Another tip from experts was for savers to continue investing in stocks. Officials said that even during retirement the long term returns from stock investments could outpace inflation in comparison to returns from bonds or cash savings. According to some officials, consumers should have a minimum of 40 percent of their portfolio in stocks when they retire.
Finally, the report suggests that people should wait as long as possible before they start collecting social security. Although this is something that can be done from the age of sixty two, experts have pointed out that retirees could get considerably more money each month if they wait until they are at least seventy years of age.
Categorized as: Business