Financial advisors project you need about 70 percent to 80 percent of your pre-retirement income once you quit working if you wish to enjoy a comfortable lifestyle.
A new survey finds that in all but two states, Americans who are at least 65 years-old are falling far short of what they will need to sustain their retirement years.
Financial experts project that retirees will need about 70 percent to 80 percent of their pre-retirement income to enjoy a comfortable retirement lifestyle. The survey released Monday by Interest.com finds that in only Hawaii and Nevada have seniors reached this savings benchmark.
In the vast majority of states, the survey finds, households are earning just 50 percent to 60 percent of the income earned by households between 45-64 years of age.
Running out of money in retirement is the greatest financial fear of Affluent investors, while not having saved enough for retirement is the biggest financial regret, according to Spectrem’s Millionaire Corner research.
Nationally, American seniors have incomes that average just 57 percent of those aged 45-65, Interest.com reports. In four states, they make less than half. Seniors 65 and older have been unable to replace even half of their younger cohorts’ incomes in New Jersey (49.53 percent), Rhode Island (48.20 percent), North Dakota (48.17 percent) and Massachusetts (45.21 percent and Massachusetts.
Interest.com analyzed household income data from the 2011 American Community Survey, which is conducted annually by the Census Bureau. It asks millions of Americans how much they make and where that money comes from, including any government assistance, such as disability or welfare payments, and all retirement income from pensions, IRAs or 401(k) plans. The Interest.com survey compares that income with that of income for households in the 45-64 age group.
Nationally, the average income for those who are at least 65 equals just 57 percent of the average income for 45-64 year-olds For a majority of these retired Americans, Social Security is the primary source of retirement income. The average Social Security payment for a retired worker at the start of 2012 was $1,230 a month, or $14,760 annually.
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