RETIREMENT CRISIS
In this retirement crisis, every minute you wait is a dollar less from your retirement savings.
This is what we used to rely on for a stable retirement income...
But this traditional model is all but gone!
Company Pensions
Personal Savings
Social Security
Traditional pensions have largely disappeared in the private sector, leaving millions with riskier 401(k)s which do not guarantee a lifetime income.
Rising costs and stagnant wages have chipped away at this leg, leaving many with dangerously low savings for the long decades ahead.
With funding challenges and questions about its future, benefits may not keep up with inflation, and retirees could receive less than expected.
With the old 3-legged stool of retirement no longer dependable, it’s more important than ever to understand how timing affects your investments.
Take Sarah and Lucy as an example...
This is Sarah. She started investing $2,500 a year at age 30.
And this is Lucy. Unlike Sarah, she waited until she was 40 to start investing the same amount.
They both have the same goal: to retire at age 65.
Sarah and Lucy each invested $2,500 a year for 25 years. Sarah stopped paying in at age 55, while Lucy had already reached 65 by the time she stopped.
Although both invested the same total amount over 25 years, their outcomes were very different. At age 65, Sarah’s investment grew to $204,074, while Lucy only accumulated $125,284.
How does that happen? Those 10 extra years!
Sarah’s investments had an extra 10 years to grow, thanks to the power of compound interest. That extra time meant Sarah ended up with $78,790 more than Lucy by the time they both turned 65.
Yes, that’s the high cost of waiting to invest! Time is your greatest ally when it comes to building wealth, so the sooner you start, the better.
"Nearly 46% of Americans have no retirement savings, leaving many heavily reliant on Social Security, which may not be enough to cover their retirement expenses..."
Do you have enough for retirement?
Find out first how much you need to retire comfortably!
2-Easy Steps to Use the (Financial Independence Number) Calculator
Enter your desired annual retirement income to cover all living expenses.
Enter the number of years you expect to spend in retirement.
Financial Independence Number (FIN)
$1,000,000
This is the ideal amount to have by age 65 (common retirement age) to have a comfortable retirement.
How much do you need to save each month to reach $1 million by age 65?
How much do you need for your Long-Term Care?
Without proper planning, long-term care expenses can quickly drain your savings. You have to make sure that your retirement plan covers this essential but often underestimated need.
2024
2030
2035
2040
2045
2050
2024
In-Home Care
Home Maker Services
$4,124
Home Health Aide
$5,989
Community and Assisted Living
Adult Day Health Care
$2,488
Assisted Living Facility
$5,717
Nursing Home Facility
Semi-Private Room
$10,768
Private Room
$11,558
2030
In-Home Care
Home Maker Services
$4,924
Home Health Aide
$7,152
Community and Assisted Living
Adult Day Health Care
$2,971
Assisted Living Facility
$6,826
Nursing Home Facility
Semi-Private Room
$13,243
Private Room
$14,215
2035
In-Home Care
Home Maker Services
$5,709
Home Health Aide
$8,291
Community and Assisted Living
Adult Day Health Care
$3,445
Assisted Living Facility
$7,913
Nursing Home Facility
Semi-Private Room
$15,353
Private Room
$16,479
2040
In-Home Care
Home Maker Services
$6,618
Home Health Aide
$9,611
Community and Assisted Living
Adult Day Health Care
$3,993
Assisted Living Facility
$9.173
Nursing Home Facility
Semi-Private Room
$17,798
Private Room
$19,104
2045
In-Home Care
Home Maker Services
$7,672
Home Health Aide
$11,142
Community and Assisted Living
Adult Day Health Care
$4.629
Assisted Living Facility
$10,634
Nursing Home Facility
Semi-Private Room
$20,633
Private Room
$22,146
2050
In-Home Care
Home Maker Services
$8,894
Home Health Aide
$12,197
Community and Assisted Living
Adult Day Health Care
$5,367
Assisted Living Facility
$12,328
Nursing Home Facility
Semi-Private Room
$23,919
Private Room
$25,674
No, you don’t have as much time as you think!
Retirement isn’t as far off as it seems, and the longer you wait, the harder it will be to reach your goals. Every year that passes is an opportunity missed.