If you're like many people today, you're just too busy to think about retirement. But no matter what your age, retirement may come sooner than you think – and last longer than you planned. You might be surprised by these facts:
- A recent survey found that 53% of those polled expect to retire between the ages of 50 and 64.
- Because they're living longer, these retirees will have to make retirement income stretch for 18 to 29 years, on average.
The reality today: the sooner you can start saving for retirement, the better off you'll be. But it's difficult to save these days – sometimes it takes two incomes just to make ends meet. Saving for retirement can be almost impossible.
That's why a lot of people look for a way to save that's easy and systematic. With a Tax Sheltered Annuity (TSA), also called a Tax Deferred Annuity (TDA), you get tax saving advantages that let you save for tomorrow without feeling the pinch today. And that's a retirement reality, not a myth.
Myth #1: There's Really No Need to Save for Retirement.
Reality:In decades past, employees could count on the three-legged stool of retirement income: a guaranteed pension benefit from their employer and regular Social Security payments supplemented by any additional personal savings. But things are different today. Many employers are reducing pension benefits, or eliminating them all together. The long-term future of Social Security remains questionable. And Americans haven't done well with their savings, either – the personal savings rate in the U.S. in 1992 was less than 5% of disposable income. The bottom line: retirees of the future will have to depend on the money they can accumulate during their working years for a good portion of their retirement income. Today, saving for retirement living is a necessity – and a smart investment plan can make it easy.
Myth #2: You Need Less Money to Live When You're Retired.
Reality:Experts say that to live comfortably in retirement, retirees need approximately 80% of their pre-retirement income. That's because there will still be living expenses, fees for recreation, and the increasing costs of health care. For many, "retirement" may mean a time to travel, build a new home, or begin a small business – all of which require cash. Without a systematic savings plan, the money won't be there to make those dreams come true.
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