Retiring comfortably is the ultimate financial goal for many, yet the journey to that finish line can be fraught with stress.
With the uncertainty surrounding the future of Social Security, many adults grapple with the question: is retiring still attainable in today’s society?
In fact, a recent survey from Bankrate revealed that 57% of Americans feel behind on their retirement savings. Additionally, a report from BlackRock highlights that 60% of people across all generations are concerned about outliving their retirement funds.
In this week’s episode of Money Glow Up, host Tiffany Aliche welcomes Robert Powell, the host of Yahoo Finance’s Decoding Retirement, to explore how to prepare for retirement effectively.
According to Powell, while retirement is achievable, the path to it varies significantly based on income level and your ability to fund retirement savings to meet your desired standard of living.
“If you’re in the highest income quintile, you’re fine. You’re more than likely saving enough for retirement. If you’re in the lowest income quintile, most of your pre-retirement income will be replaced by Social Security,” Powell explains. However, “ if you’re in the middle-income quintiles, those are the people that need to worry about whether retirement is attainable or not.”
To prepare for retirement, Powell advises individuals start by assessing their goals and sources of income, estimating their expenses in retirement, and identifying potential risks they may face.
Powell also recommends saving at least 10% of your income and gradually increasing that to 15% as you age.
“The good news is the faster you can escalate, the faster you’ll probably attain a nest egg that’s sufficient to fund your desired standard of living,” Powell adds.
Together with Yahoo Finance, Tiffany Alice creates a space to share real and inspiring money stories, learn financial fundamentals, and build your future. Step into the classroom with Money Glow Up every Thursday at 12 pm ET with Tiffany Aliche — aka The Budgetnista — to jump-start your financial journey.
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
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