Scary Facts About Retirement Readiness

Just in time for Halloween, NAIFA presents a list of frightening retirement readiness facts that will make your hair stand on end!

Congressional tax reform could severely limit pre-tax contributions to retirement plans.

Proposals to limit pre-tax contributions to retirement accounts will harm overall retirement readiness and severely limit the choices of employers and plan participants. NAIFA is working with members of Congress to oppose Rothification and push back against any unreasonably low limitations on pre-tax retirement contributions. We support full preservation of pre-tax retirement savings. Read more.

A couple can expect $275,000 in out-of-pocket medical expenses in retirement.

This number is scary, but the actual cost of health care will depend on a variety of factors like your health and how long you will live. Plus, it’s uncertain what the health care landscape will look like in the future. NAIFA members are skilled financial professionals who work passionately to secure the financial freedom of individuals, families and businesses. Here’s to hoping you have good health into your retirement, but hope is not a strategy. Learn more.

68% of baby boomers wish they’d saved more for retirement.

And just one out of four baby boomers is confident they will have enough money to retire. They’re worried about the state of social security and unexpected health care expenses. If you’re not ready to retire, then meet with a financial advisor for planning strategies, including long-term care insurance. November is long term care awareness month, read more.

55% of retirees retired earlier than expected, often due to health issues or job loss.

Some workers say that their “retirement plan” is simply to keep working. However, this scary statistic shows that delaying retirement is not always an option. Americans need incentives to put money into retirement accounts. Proposals to limit pre-tax contributions to these accounts would have detrimental effects on their inclination to successfully prepare for retirement and manage life’s unexpected occurrences. Watch this.

Social Security will only cover 77% of promised benefits beginning in 2034 -
Social Security Board of Trustees.
In just 17 years, the Social Security Trust Fund will run out of money and without a change in policy the only thing funding Social Security payments will be the payroll taxes collected at that time. The 2017 Social Security Board of Trustees report estimates that this will leave 33 percent of promised benefits uncovered. Retirees will be forced to draw even more on their personal savings, making retirement planning even more crucial.

20% of Americans with 401(k) plans take early withdrawals or loans.

401(k) plans allow workers to maintain financial security in retirement. It’s frightening, however, that many 401(k) plans are significantly underfunded. Making matters worse, one out of every five of plan holders is withdrawing money or taking loans against their plans to pay for things other than retirement expenses. Advisors can help clients develop plans to prepare for all sorts of financial eventualities, without sacrificing their retirement savings. Read this article for more on how advisors help clients prepare for retirement.

Without LTC insurance, one year in a nursing facility can cost more than $200,000.

Long-term care is an expense that many people neglect in their retirement plans. A professional advisor can help client ensure that all their retirement expenses are accounted for. Learn more.

$30,000 in student loan debt can reduce Millennials’ eventual retirement savings by $325,000.

College graduates are entering the workforce with more debt than ever in the past. According to the LIMRA Secure Retirement Institute, this can continue to affect them years or even decades later if it prevents them from taking advantage of retirement plan benefits early in their careers. Professional advisors can help parents and students mitigate the impact of student loan debt. Learn more.

45% of Americans have saved nothing for retirement.

Perhaps the scariest fact of them all! NAIFA advocates on behalf of advisors and their clients for legislation and regulations to encourage, rather than discourage, increased retirement saving by consumers. Visit
  • Posted October 30, 2017 IN
  • Comments (1)

Hollie C. Gandy
This would be a great article for you tomorrow. It would really help put retirement into perspective for our aging population.

Contact me if you would like to know more!
10/30/2017 1:17:25 PM