Tag Archives: retirement income calculator

Getting Real About Retirement Costs

The Employee Benefit Research Institute (EBRI) does an annual study called the Retirement Confidence Survey (RCS). The RCS typically shows that Americans are not saving enough for retirement and that many people simply have no idea how much they need to save.  The 2011 study is no exception. Among other things, the RCS asks participants how they are estimating how much they need to save and where their current estimates fall.

The 2011 survey finds:

  1. Only 42% of workers have even tried to calculate how much they need to accumulate in order to retire
  2. 31% of workers think that they can retire with total savings of $250,000 or less
  3. 19% of workers think that they can retire with total savings of $250,000 to $500,000

These numbers are pretty close to the RCS findings in the past, and the longer these numbers hold, the more it is clear that the self-directed retirement planning process is not succeeding. Continue reading

73 is the new 65: Are you saving enough for retirement?

The ballooning national debt has stoked debate over raising the age for collecting Social Security without penalty. But if anyone was hoping 401(k)s could save the day for retirees, that’s rapidly being proven wishful thinking.

A recent study by actuarial and consulting firm¬† Nyhart found that people relying on their 401(k) to cover their retirement expenses won’t be ready to stop work then. They’ll have to keep at it until 73, on average, to have a shot and not outliving their savings, based on Nyhart’s examination. And because they were not saving enough prior to the recession and then suffered significant losses in 2008, workers in their early 60s now will have to work to 75. Continue reading