November 22, 2011 — A survey by the Employee Benefit Research Institute found that only 13% of workers felt very confident they would have a secure retirement. To help get you into that elite group, here is a short roundup of the best “how to” articles on planning for your retirement we’ve seen in recent weeks.
12 Steps to Take in Your 60’s
From MSN/Money, this article is genuinely helpful. Among its top tips: Get long term care insurance, figure out where you are going to live, draw up a retirement budget, and consider an annuity. There’s more good advice, check it out.
Our Financial Smarts Erode After Retirement
We’ll all have a hard time believing this, but the proof seems there: starting at age 60 we start to lose our ability to make smart investment and financial decisions. According to Michael Finke, a professor at Texas Tech University, our scores on a financial literacy test tend to go down about 2% each year after 60. That’s bad news because that’s just about when we need all the wisdom we can get. Robert Powell and MarketWatch.com have devised their own financial literacy test – take it and see how you do!
How Much Do You Need to Save for A Secure Retirement?
The Center for Retirement Research at Boston College has put together a very detailed look at the question of how much people need to save for a secure retirement. The authors start with an 80% replacement assumption – retirees will need to replace at least 80% of their pre-retirement income to enjoy a financially secure retirement. Knowing how much you will receive from social security and pensions is the first step in the process. Savings rates to get to the 80% replacement level will differ by income group and age that one starts savings. Higher earning individuals will need to save much more than lower income individuals because social security will provide the bulk of the latter’s income. Likewise those who start saving earlier will have an advantage.
Great Places to Retire and Find a Job. Finally, here’s an article from the Wall Street Journal that picks out some great places for those who plan on working in retirement. To come up with their list they looked for towns with low unemployment rates, and some of them are very attractive. The authors liked Santa Fe, NM; Portland, ME; Jupiter, FL; and Lincoln, NE.
Comments: What financial advice would you give your fellow members? Any mistakes you would like to avoid, and successes to repeat? Let us know in the Comments section below.