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Unwritten rules guide us throughout our lives, from infancy to old age. As far as retirement income is concerned, most professionals believe that getting back 70% of his pre-retirement income for years is the bare minimum standard he uses to maintain a standard of living when he finishes his job. I agree that it should be
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But according to Goldman Sachs financial experts, 75% of retirees are unable to accumulate the amount of savings needed to maintain the lifestyle they want after retirement.
The Goldman Sachs Retirement Survey & Insights Report 2022 highlights how difficult it is for retirees to earn enough to live comfortably. Just over half (51%) of those surveyed are settling on less than 50% of her pre-retirement income. More than 40% of his respondents claim they are behind in saving and need to catch up to reach their goals. desired retirement income.
Among those still working, baby boomers are most likely to say their combined savings are lagging (53%), followed by Gen X at 51%, Millennials at 34% and Gen Z. followed by 27% of respondents.
Retirees still worried about the future
Retirement is seen as a time to relax and enjoy the rest of your years comfortably, but retirement planning can be anxiety-inducing. feel financial support is important to them, but 56% prefer to be in control of their income.
Naturally, there are many factors that influence current or prospective retirees’ concerns about earning income. The survey found that retirees are most afraid of rising inflation (71%), future medical needs (51%) and potential cuts in social security (46%). Working individuals were most concerned with ensuring adequate savings (51%), inflation (49%) and leaving a stable salary (43%).
If you feel like you won’t be earning enough in retirement and are feeling overwhelmed with managing your financial priorities, there are some steps you can take to fix your financial situation and ease your anxiety. .
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The top three actions taken by respondents in the Goldman Sachs survey were cutting spending, implementing a more conservative investment strategy, and investing in an emergency savings fund. However, CNBC suggests taking the following steps to increase your retirement income.
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Review your lifestyle now and look for ways to reduce your spending.
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Even if money is tight, set aside a little more of your paycheck to save.
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If you don’t have access to a 401(k) workplace retirement savings plan, consider donating to a pre- or post-tax Individual Retirement Account (IRA) or Roth IRA.
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Instead of trying to play (or timing) the market, keep investing your money.
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Defer receiving Social Security benefits, even if your Cost of Living Adjustment (COLA) is high.
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Consider purchasing an immediate or deferred annuity depending on your retirement expectations and strategy.
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Keep working, keep making more money, keep saving.
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This article originally appeared on GOBankingRates.com: Retirees in Trouble: 75% Fall Behind This Key Income Goal, So How to Catch Up
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