There are mounting challenges for retirees as the average lifespan increases, but some Americans still aren’t saving enough.
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The median amount working-age families in the United States have saved for retirement is $5,000, according to the Economic Policy Institute, and nearly half of American families have no money stashed away.
Meanwhile, nearly one-third of current retirees report spending just as much or more money once they have entered retirement, according to a survey from MoneyTips.
While the retirement age has been set at 65, many Americans are working past the traditional retirement age in order to enjoy a more financially secure future.
In the second quarter of 2017, more than 18% of people ages 65 and older were still working at least part-time, according to Bureau of Labor Statistics data.
So what can you do now to bolster your nest egg? Here are the top tips from retirees to help you thrive after you stop working.
More than 36% of retirees advised people planning to retire to start planning today, according to the MoneyTips survey. Many experts agree it is never too early to start stashing cash away. In fact, the Trump administration even debated adjusting the 401(k) “catch-up” contribution threshold for those over the age of 50, in order to encourage Americans to start saving earlier. They ultimately decided to leave it untouched for now.
Start planning now was followed closely by “save more than you think you need” (28.7%). As previously reported by FOX Business, it is not enough to simply keep up with the pace of inflation, individuals should aim to save 2% to 3% above the inflation rate on a regular basis.
Take care of your health (26%) was the third most popular recommendation among retirees, who tended to underestimate how unhealthy they would be as they got older.
Among those families on the lower-income end of the spectrum, making below $30,000 per year, the guidance to save more dominated among current retirees. For those with higher incomes, between $100,000 and $150,000, being vigilant about health was of utmost importance.
While only 16.3% of people reported being able to retire early thanks to strong finances, nearly 40% said they had to leave their jobs because they were fired, or had health or family issues to tend to.
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