Retirement Budgeting: Understanding the Cost of Retirement:

The following excellent article is quoted from Moneywise by by Amy Legate-Wolfe: 

UNDERSTANDING YOUR RETIREMENT INCOME

Retirement Income - Social Security

"Social Security retirement benefits averaged $1,782 per month in February, for a total of $21,384 per year, according to the Center on Budget and Policy Priorities. Broken down weekly, that’s roughly $450, not exactly a king’s ransom.

Social Security: $1,782 per month ave. or $21,384

Americans 65 years and older reported a median annual income of $47,620 in 2021, according to the United States Census Bureau. However, the median for all households came in much higher, at $70,784. Furthermore, the 65-and-older figure was 2.6% lower than in 2020. Especially once medical expenses are factored in, it’s risky at best to count on Social Security to cover all retirement expenses.

UNDERSTANDING YOUR RETIREMENT EXPENSE

American's 65 and over, spent an ave. of $49,872 per year

The Bureau of Labor Statistics broke down the expenses of those 65 and older. Taking into account combined income sources, including savings and Social Security benefits, Americans aged 65 and over spent an average of $49,872 as of 2021 — higher than that $47,620 median annual income figure cited above. The expenses break down to $54,418 for those 65 to 74 and $43,316 for those 75 and over.

CALL TO ACTION: DO THE MATH...

Social Security Benefits alone may not be enough

So what will it be: Back to the grind or back to the drawing board? 

To the latter point, consider meeting with a financial adviser to work out smart solutions with the money you’ve got: how you can cut back, downsize or unlock the potential of your assets."

THERE ARE OPTIONS 

Meet with a Financial Advisor - options may be:

  • CUT BACK

  • DOWNSIZE

  • UNLOCK THE POTENTIAL OF YOUR ASSETS


                                                Photo: D. McCallister.  Falls Creek, Alaska

RESOURCES THAT MIGHT BE HELPFUL...

- Moneywise. Here is the average income for retirees in the US — how do you compare? by Amy Legate-Wolfe.  What Is the Average Retirement Income In the US? | Moneywise 

- Fisher Investment 15 minute retirement plan.  Special Offer from Fisher Investments

- Retirement withdrawal and income calculator.  How much can you withdraw from your retirement accounts every year before you run out of money?  Retirement Planning: A 5-Step Guide for 2023 - NerdWallet

- 5 Steps to Retirement Planning in 2023: An Introduction & How-to Guide. NerdWallet. By Tina Orme.  Retirement Planning: A 5-Step Guide for 2023 - NerdWallet

- Make A Retirement Planning Checklist.  Forbes Advisor. By Bob Sullivan.  Retirement Planning Checklist – Forbes Advisor

- Build a Budget That Fits Your Goals.  AARP Money Map™


SO...What'd we miss??

What have you found helpful to "understand the cost of retirement"?  




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