73% of Americans Lack Financial Confidence in Retirement
Retirement can be a daunting prospect, since it generally involves moving from a steady paycheck to a fixed income. Unfortunately, the overwhelming majority of Americans lack financial confidence with regard to that milestone.
Only 27% of U.S. adults are very confident about their ability to maintain financial stability in retirement, according to TIAA’s 2019 Lifetime Income Survey. If you’re not one of them, here are three important things to do today.
1. Know what to expect from Social Security
Many people worry about their finances in retirement because they’re aware that Social Security is facing financial difficulties that could result in benefits being cut. Clearly, that’s not good news. But rather than get hung up on a potential decline in benefits, understand that Social Security was never designed to get you through retirement by itself in the first place. In a best-case scenario — meaning, no cuts in benefits — it will replace about 40% of your previous income, assuming you’re an average earner. Most seniors, however, need close to double that amount to maintain the same lifestyle they get used to during their working years, which means you need a backup plan no matter what.
Read more @The Motley Fool
