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.

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

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