One of the biggest fears of people who go to Retirement is to make sure your money lasts as long as they do. But a new report shows that fear is the new reality for most Americans.
According to the World Economic Forum, the average American man will survive his retirement money in 8.3 years. Women could expect their money to run out 10.9 years below their average life expectancy.
And that’s just for the 58% of Americans who have some savings for retirement.
That is a terrifying prospect. But it doesn’t have to be you.
You can take control of your retirement without having to land a job greeting customers at Walmart. And we will show you a simple way to do it below.
How did it get so bad?
Living longer is a good outcome for anyone, of course, but it comes with some costs. The longer you live, the longer you will need money to pay your rent or mortgage, utilities, food, entertainment, and medical care.
Thanks to modern medicine, agriculture and technology, people in the developed world have fewer obstacles in the way of a long life. But the global retirement savings gap is expected to rise above $ 400. trillion in just 30 years. The US share is expected to be $ 137 trillion.
Do not miss: The Treasury is sitting on a pile of $ 11.1 billion cash, and a loophole entitles Americans to a sizable chunk. Some are collecting $ 1,795, $ 3,000, or $ 5,000 each month. thanks to this powerful investment…
Greater responsibility for retirement finances now falls on the collective shoulders of retirees themselves thanks to the shift in employer-funded pensions. Furthermore, social security could very well be insolvent by 2035.
Also, simply saving for retirement can’t do the job when interest rates are chronically low. Since the financial crisis of 2008, the yield on the benchmark 10-year US Treasury bond has been mostly between 1.5% and 3.0%. Even with the low inflation we’ve had for the past few years, it’s not going to fund a comfortable retirement at these rates.
And the money market and savings accounts are worse. They were near zero interest for several years, before barely improving last year. But they still offer a lower yield than the 10-year Treasury bond.
Of course, the stock market has performed much better, but that won’t last forever. In fact, Morningstar Investment Management predicts a mere 1.8% nominal return for stocks over the next decade. That means that bonds and savings accounts would outperform stocks. And that simply won’t be enough for the retirement plans of most Americans.
Fortunately, there is a way to add income to your portfolio and increase your returns.
Here’s how to have enough money to retire
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