6 “Uphill” Facts
- 61 is the average retirement age (it was 59 in 2003 and 57 in 1993), according to a 2013 Gallup survey
- 18 years of retirement (on average) 13% of the average population is
- 65 years or older
- 80% of 30- to 54-year olds believe they will not have enough retirement money
- 36% of Americans save nothing for retirement
- 63% of American workers who start work at age 25 and retire at 65, will depend upon Social Security, friends, relatives or charity
6 “Downhill” Options
1. Create a financial plan.
Figure out how long you can live on your expected retirement income at your current lifestyle.
2. Cut your spending now.
Consider downsizing your home and paying off your debt. Add money to an age-appropriate investment vehicle.
3. Find a retirement-friendly employer.
Work for a company that offers a 401(k) match or a pension plan and contribute the maximum pre-tax dollars.
4. Open a Roth IRA account.*
Unlike standard IRAs, you contribute after-tax money, so it’s another way to save.
5. Move to a cheaper location.
Many retirees dream of living in warmer climates; however, consider states that are tax-friendly to retirees.
6. Maximize your Social Security checks.
Don’t take payments until you must. Taking checks at age 62 will trim your monthly payments.
Every day, we edge closer to our retirement, but many of us will be caught unprepared.Yet, here’s what we can do now to make heading into retirement a whole lot easier. Contact a financial advisor today.
*The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. LPL Financial representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.This material has been prepared by LPL Financial. A registered investment advisor, member FINRA/SIPC. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial is not an affiliate of and makes no representation with respect to such entity. Not FDIC or NCUA/NCUSIF Insured | No Bank or Credit Union Guarantee | May Lose Value Not Guaranteed by any Government Agency | Not a Bank/Credit Union Deposit © 2014 LPL Financial LLC. All Rights Reserved. The information contained herein has been prepared by and is proprietary to LPL Financial. It may be shared via social media in the exact form provided, in its entirety, with this copyright notice. MKT-0130-0814_B2_i17 LPL Tracking # 1-278881