We all realize we should be saving for retirement. Most of us know we should be saving more than we currently are toward our retirement goals. What happens when there’s job loss, cut-backs, layoffs, illness, and other unforeseen events during your working years? It impacts your retirement savings.
Do you know anybody who has avoided financial setbacks during their working years? Some people experience being under-employed at some point during their career, divorce, managing an illness, helping a loved one or living with a low income. So, what happens when you retire without enough money saved for retirement? Many people retire believing their retirement plan, and spending plan is going to work, and then unexpected circumstances happen, and they are unprepared.
The disadvantages of not having enough money saved when you retire include:
- Not getting proper maintenance done on your home
- Not being able to update your home office equipment or repair it.
- Living together with family because you cannot afford to live on your own.
- The need to receive financial help from the government, family, friends or charity organizations.
- Your health can fail where you aren’t able to continue working that part-time job or as an entrepreneur.
Saving for retirement is challenging and difficult at best. The earlier you start saving for retirement, the more you can save and the better prepared you will be for being comfortable during retirement. It has been recommended that people have twice their salary saved by thirty-five years old. This received a lot of feedback from outraged readers. In reality, many Americans do not have enough saved to retire. About half of Americans do not think their retirement savings will be sufficient and half believe they will be sufficient and comfortable during retirement. The majority of people who thought they’d be comfortable in retirement ended up having enough money in retirement.
Some recent research of 2,000 Americans 18 and older has shown that one in five Americans has no savings at all and one in three have less than $5,000 saved for retirement. It’s better to start preparing for retirement as soon as you can. It is also recommended to do your best to save more for retirement than you think you’ll need. If you are already retired and don’t have enough money, living with family, friends or family might be a good option for you. Sometimes it can be a winning situation for everyone involved as you have time to give to lend a hand here and there. Sometimes accepting help from various sources is what needs to happen. It’s a fact many retirees face every day.