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Who Wants (or Needs) to Be A Millionaire?

Who Wants (or Needs) to Be A Millionaire?

By Susan Williams

We recently shared a post on social media by CNBC entitled When a $1 Million Retirement Nest Egg Isn’t Enough.

This post generated quite a response. And I can understand why.

In the article, the writers shared that even though a $1M retirement nest egg was once considered a benchmark to live a life of comfort in retirement, that this is no longer necessarily the case.

The reasons they gave were many.

Self managed pensions, increased longevity, overall living costs, rates of inflation and investment returns are all contributing to why having a cool million in reserves for retirement may not do the trick any more.

Everyone dreams of being a millionaire one day and to discover that achieving this status may not even allow you to live the life you hoped for in retirement can be shocking.

What is really concerning is that if this is the case, there may be some troubling times ahead for many people.

In the article Are We In A Baby Boomer Retirement Crisis? posted by Investopedia, they shared the following research from the Insured Retirement Institute;

“According to the study, 24% of Baby Boomers have no retirement savings – the lowest number since the study started in 2011. Only 55% of Baby Boomers have some retirement savings and, of those, 42% have less than $100,000. Thus, approximately half of retirees are, or will be, living off of their Social Security benefits.”

So if we’re in this situation – what can we do?

I think the first place to start is to be aware that all the information shared in these articles is based on generalities and averages. Everyone’s individual financial situation is different.

In a survey conducted by Merrill Lynch, they discovered that 81% of Americans don’t know how much they will need in retirement. So if we leap to the conclusion that our retirement planning needs are the exact same as everyone else’s, we might be wrong.

Where we live, our personal lifestyles, our interests and our spending habits are unique to our own situation. We also have to take into consideration how long we think we will live, how many years we need to support ourselves and how well our investments will perform.

I think we each have the responsibility to figure out and validate what our own financial retirement planning number is.

Whether we do this on our own or with the help of a financial planner – I believe this responsibility lies squarely with us.

Also Read: Is It Time To Find A Financial Planner?

Once we have this figured out, we can then determine how much money we actually need for our own retirement.

Maybe it’s $50K, $500K, or even $5M. Whatever this number is, it should be based on calculations of our individual retirement planning assumptions.

Once we have done this, we can move forward in the comfort of reading headlines like this having the knowledge of knowing whether or not having a million dollars for retirement is truly a concern.

After all, knowledge is power.

If you are behind in your retirement savings and need to save more, the following tips from Forbes on how to catch up in your savings later in life may help…

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Susan Williams is the Founder of Booming Encore. Being a Boomer herself, Susan loves to discover and share ways to live life to the fullest. She shares her experiences, observations and opinions on living life after 50 and tries to embrace Booming Encore's philosophy of making sure every day matters.