Friday, December 28, 2012

Retirement Financials - Perception versus Reality

The Middle Class Retirement Delusion By The Numbers summarizes five misconceptions Americans have about retirement financial situations.   Specifically, the misconceptions are:
  • Over estimating ability to work past retirement age.
  • Under estimating percent of pre-retirement income needed.
  • Under estimating out of pocket health care costs.
  • Under estimating savings needed to retire.
  • Over estimating the savings withdrawal rate.
The article reports that due to these misconceptions, people are not saving enough for retirement.   The solution: start saving early and max out contributions to tax advantaged retirement saving plans.

 For more on Reaping the Rewards, check back every Friday Saturday Sunday for a new segment.

This is not financial, or retirement saving advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC

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