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Ghosts, ghouls, and goblins are nothing compared to the scary specter of not having enough money saved for a comfortable retirement. But that is just the frightful situation too many Americans will find themselves in unless they start saving more now.
Two out of three Americans have some kind of a nest egg for retirement, but for many, it’s more of a quail egg than an ostrich egg. More than half of the people recently surveyed by the Employee Benefit Research Institute have less than $25,000 saved for retirement. Around 30 percent have saved less than $1,000.
It’s not that people are in denial about their prospects for a comfortable retirement. Three in four Americans are “highly anxious” about how they will fare in retirement, according to research from the National Institute on Retirement Security (NIRS).
Other NIRS data confirm that people are right to be worried. Its State Financial Security Scorecards paint another scary picture: Residents in only nine states (Alaska, Iowa, Minnesota, New Hampshire. North Dakota, South Dakota, Washington, and West Virginia) rank near above average in their readiness to meet their economic needs in retirement. California, Florida, and South Carolina are at the bottom of the list.
Treat Yourself to a More Comfortable Retirement
It’s easy to be spooked by the idea that it's important to start saving for retirement early when you have to focus on your house, car, and insurance payments today. Many people are insecure about their job security. Saving for a child’s education can be seen as a more immediate need. And for many, paying off accumulated debt has to come first.
But like trick-or-treating, your retirement savings can grow one deposit at a time. When you save with a tax-advantaged IRA, you get an extra treat. In a Traditional IRA, you potentially get an immediate tax break, and with a Roth IRA you benefit from tax-free distributions or earnings once you’re retired.
When you choose a self-directed retirement account, you get to choose exactly what kind of candy—make that assets—you want to have in your account. Everything from precious metals to real estate can be held in an IRA.
Treat yourself to an Entrust webinar on 3 Essential Steps Before Investing in Real Estate. Learn how to start your retirement planning and conquer fear with knowledge.