Studies around the world show a rapid decrease in average retirement savings. Whether you are paddling towards retirement or are full steam ahead this affects us all. Some people don’t have spare money to save. Others don’t trust retirement funds anymore. This all affects average retirement savings.
Finding the right advisor is difficult. Some want to sell you a product to earn commission. Some put data into a computer program and tell you how much you should save. This is not helpful if you don’t have spare money to save. It also doesn’t help those who don’t want to save into a retirement fund. Try finding an advisor who charges an advisory fee and has a degree in finance/economics. Advisors must disclose how they charge and what their qualifications are.
The decrease in average retirement savings is likely to carry on. This will stress governments. Many people who retire will not have enough money to live off. When going to see an advisor work out how you can save more. You may need to cut out luxury items. You may have to shop differently. Sell that luxury car and buy a reliable car. Consume less, switch off lights, start a car pool etc. There may also be ways to increase your earnings. Find a professional to help you go through all of this.
Average retirement savings into retirement funds has dropped because of fear. There are many other ways other than a retirement fund. Your advisor must be able to discuss these with you. Look at other products where money can be invested and discuss risks. For example government bonds, fixed deposits, income funds, property etc. All of these can be invested into.
Not using a retirement fund means that you will not get a tax benefit. Not planning for retirement means you will not be able to retire. We will discuss working and earning past retirement age in another article.This is a discussion on average retirement savings and not financial advice.
Reference for: Rapid Decrease In Average Retirement Savings