The answer is yes!
The year 2020 has shaken many and brought their focus back to basic needs. But one that may be overlooked right now is the subject of retirement. Even though it might not seem important, it may be more important than ever, especially since the studies have shown that the number one financial worry of working people is that they don’t have enough saved to retire.
It is a viable worry too be because most are not prepared for how long their retirement could actually last and/or depending on Social Security to supplement what they haven’t saved. Currently, the average American will retire around the age of 66 and live until nearly 79 years old. However, retirement will last much longer than 13 years. Admittedly, these statistics are slightly skewed by the number of individuals who die relatively young.
In terms of Social Security, it has its shortfalls. Advisors have seen that Social Security payments alone won’t be nearly enough to cover the recommended replacement of 80% of your usual income once you retire. In early 2020, the average monthly Social Security benefit was only $1,503, which comes out to $18,036 year.
“One of the big issues with Social Security is that it only provides a similar standard of living for those in the lowest quartile of income earners in the U.S. In other words, unless your household is earning less than $30,000 a year, most people will need to rely on some sort of personal savings in order to maintain their current standard of living in retirement,” says Mark Hebner, founder and president of Index Fund Advisors, Inc., of Irvine, California, and author of Index Funds: The 12-Step Recovery Program for Active Investors.
This is especially concerning considering that more than 50% of Baby Boomers say all or most of their retirement income will come from Social Security. This is proof of why it’s so important to start saving early and use all resources available to you.
What is doubly concerning between supplementing your retirement with social security and not saving for more than a 13-year retirement, is that these numbers are generally just for the standard cost of living - on average, retirees spend roughly $46,000 per year on living expenses alone. And many don’t think, or rather, don’t want to think about potential health costs or emergencies down the road. The average couple retiring today will have to cover $280,000 in post-retirement healthcare costs and the average retiree spends about $4,300 out-of-pocket expenses annually for their healthcare.
One thing most think about when it comes to retirement though is what they want to do in their golden years. However, according to Bloomberg, 20% of workers overall say they will probably never be able to retire due to the costs.
This is where IMS can help you.
IMS has a Retirement Saving Account program that is available to you.
With an IMS retirement savings account, funds are deposited automatically into a specialized savings account on a monthly basis. These funds can be used to supplement medical benefits or enhance your lifestyle during retirement. The trade put into this account can be used at any time, will not expire, and there are no monthly fees.
Instead of spending the cash you are currently working so hard on saving right now, take advantage of your trade. We have hundreds of physicians, eye doctors, dentists, chiropractors, across the country. We have thousands of travel destinations across the globe and just as many experiences and restaurants for you to explore, and so much more.
If you are interested in learning how the power of trade could help prepare you for retirement, especially in these uncertain times, contact us today. We want not only want to help the way you do business but also the way you live.