Golden Girls in Golden Years

Will you or won’t you be able to maintain the same standard of living you have today in your golden years?

Want More?

The study, which tracked workers’ wealth-to-income trajectories between 1983 and 2013, found that the numbers have remained steady for the entire 30 years—which doesn’t bode well for today’s savers.

Analysts say they should be upping their savings game to compensate for changes to Social Security, longer life spans and increasing health care costs.

So what’s preventing people from socking away more? The biggest factor is the lack of pensions: Back in 1979, a whopping 28% of workers in the private sector were able to rely on them as their sole retirement plan—but that number dropped to 3% by 2011.

As a result, the average 62- to 65-year-old in 2013 had amassed wealth about three times his income—which is actually slightly below the 1983 figure. To get back on track, it is estimated that households will need to save about 70% of their pre-retirement income in order to lead a comparable lifestyle down the line.

That translates to funnelling about 15% of each paycheque over the course of 30

years.

Just keep in mind that these estimates assume that retirees will downsize their living

expenses after they stop working and won’t spend as much once they’re no longer

caring for children and other dependents.

If this news has you motivated to increase your retirement savings today, start by

Small Move #5: Adopt the Buddy System

Need extra motivation to push you to save smarter? This is where having some accountability can help.

Maybe you’re procrastinating rolling over your super. Or perhaps you’ve been meaning to

check your retirement portfolio to decide if you need to rebalance.

In the same way that a gym buddy can push you to do more reps, a money buddy—in

the form of a friend, family member or financial adviser—can challenge you to be better

with your finances, help you meet deadlines or just give you that extra shoulder tap to

get a task done. incorporating this small move can make a big difference to your nest

egg.

We are here to help, feel free to call Madhu on 0425341086 or visit our website.