MSN has an article out calling out the peak boomer crisis that seems to metastasizing into a very ugly future for millions of potential retirees.
On Wednesday, AARP released the results of a January survey delving into retirement outlooks for Americans aged 50 and above. It found that many of them are not feeling confident with their finances. Particularly, one in five older Americans surveyed reported having no retirement savings, and over half of them do not think they’ll have enough money to keep them afloat in retirement.
Inflation is straining their finances even more — according to the survey results, 37% of aged 50 and older respondents were worried about affording basic expenses like housing and groceries, with 70% worried that everyday prices are rising faster than income. With all those economic stressors, 26% of older people not currently retired say they never expect to retire.
MSN.com
While we’ve built a nice nest egg, we do often worry about inflation eroding the purchasing power of our investments and savings. Inflation is the key reason why inflation features so prominently in our retirement spreadsheet. One of the core reasons we got into property rentals was to have a way to pass on rent increases and grow our income in addition to our stocks, bonds and other investments.
Another on the same topic here shows that 52.5% of Americans have less than $250,000 in retirement savings and some people have monthly expenses of $4000/month. An investment of $250,000 at 10% return annually will only generate $25,000/year or $2083 (tax not subtracted).
It’s all very concerning especially if social security actually goes insolvent in 2033 as expected by current projections.
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Are you prepared for retirement? How much money do you think you will need and are you confident you will have investments to generate that amount?