Most people consider retirement to be the “golden years.” You intend to take restful vacations, travel to see the world, possibly to destinations that have been on your bucket list for many years, and discover hobbies that keep you active. But unfortunately, some retirees cannot live this reality because they have fallen behind on retirement planning or have been unable to keep their investments up to date.
Canadian statistics show that 97% of retirees will retire below the poverty line. It seems as though most people rely on their bank institutions to handle their retirement savings and planning investments, which seems expectant of banks to do such. Still, banks end up taking advantage of their client’s money, and I guarantee that the main focus is not to save you money but to use your money and make more for themselves.
Make sure that you are in control of your savings and investments and talk thoroughly with your advisor to make sure everything is looked after the right way and, of course, your way!
How Millennials Can Amass a Million
Wells Fargo gives this example: An average Millennial with a $32,000 beginning income at the age of 25 who saves 5% each year and increases the income by 2% each year up to 13% will have $1 million by the time they reach the age of 65. (Caveat: Wells assumes a 2% annual increase and 7% annual investment rate of return – unlikely, but not impossible.)
The real question is whether $1 million will be sufficient for a pleasant retirement. Robert Powell, the astute retirement writer for USA Today and MarketWatch.com, is skeptical, and I concur. (Remember that a million dollars today would be worth roughly $400,000 to $500,000 when Millennials retire.)
P.S. I’m not supposed to post this since I’ve worked for some of the world’s most powerful banks, and they despise seeing it because they don’t want you to know their secrets.
Related article: How to increase your Credit Card
Reference:
America’s coming retirement crisis
5 Reasons the Retirement Crisis Is Getting Worse for Average Americans
Pensions and retirement
