Deep Dive
Why are many people unprepared for retirement?
Most workers don't know how much they need for retirement, and many rely on external forces like Social Security or their children, which are unreliable.
What is the median 401(k) balance for Gen Xers?
$54,500, which is far below the estimated $1.56 million they think they'll need.
What percentage of income was Social Security intended to replace?
40% of income, but many people rely on it for 90%.
What is the average Social Security payment in 2024?
$1,920 a month, totaling $23,000 a year.
What is the recommended percentage of income to contribute to retirement accounts?
15% of income once debt-free and with an emergency fund.
What is the potential retirement savings with an 8% return over 30 years?
With an average household income of $80,000 and a 15% contribution, you could end up with $1.5 million.
What is the key to retiring well?
Making strategic sacrifices now, getting out of debt, and investing wisely.
What is the demographic shift predicted by the U.S. Census Bureau by 2034?
There will be more adults 65 and older than kids 18 and under for the first time in U.S. history.
What is the significance of Social Security in retirement?
It was intended to replace 40% of income, but many rely on it for 90%, leading to financial hardship.
What is the potential retirement savings with an 8% return over 40 years?
With an average household income of $80,000 and a 15% contribution, you could end up with $3.5 million.
- Most people don't have close to what they need to retire comfortably.
- Gen Xers think they'll need 1.56 million to retire comfortably, but the median 401k balance is $54,500.
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