For so many of us, retirement is such an abstract concept, that rather than think through the numbers, a lot of us would rather put our head in a hole in the ground.
But what if you had to work through the numbers? What if you forced yourself to figure out what you would need? Would you even be in the ballpark? This study from Fidelity, says the answer is most cannot even see the ballpark.
Here are some of the highlights:
- '74 percent of respondents underestimated how much is needed. Furthermore, 25 percent of respondents expected to only need to save 2-3 times the amount of their last full year income'! And while every advisor has an opinion (you know the saying) on how much you need: rest assured it will be far more than 2-3 times your last full year income.
- The consensus among most advisors is that a person can 'safely' withdraw 4%-5% of their retirement assets each year. Very disturbingly 38 percent of those surveyed over 55 said 'they could withdraw seven percent or more of their savings annually . . .15 percent of this age group felt they could withdraw 10 to 12 percent annually'! This one makes me shudder.
So what now? Do not run from this conversation. It may scare you, but you will be more scared when you go to retire and find you may need to ask your kids if you can move into their place.
If you are ready to bite the bullet, call us or schedule a coffee here. We want you to join the evolution!