Here are some statistics that should give you some concern. According to a new report from the Employee Benefit Research Institute (EBRI), almost one in five elderly American households outspent their income by more than 50% in 2009 and some (14%) outspent their income by more than 175%. Those most vulnerable were singles, households with no pensions, African-Americans and Hispanics.
This should be a heads-up that you need to pay attention to your financial situation and start taking personal financial responsibility. Do you really want to depend on Social Security and family for your retirement?
The EBRI report showed that Social Security remains the primary source of income for all adults over the age of 65. In 2009, households ages 65 – 74 and households with members over 85 received 54% and 66% of their total household incomes, respectively, from Social Security.
According to the report, elderly Americans rely more on social security as they age. For households that had members ages 65 – 69 in 2001, the share of household income derived from Social Security rose from 47% in 2001 to almost 60% in 2009.
How many years do you have until retirement? Have you reviewed your investment and retirement plans? Are you adjusting your spending to allow more savings for your Golden Years? Have you looked at all your alternatives and reviewed these with your agent or financial advisor? Do you have adequate life insurance to protect your spouse if you die too soon and don’t have time to complete your plans?
The time to take personal financial responsibility is now. Call your agent of financial advisor today. Don’t put off until tomorrow what you need to do today!