It is never too early or too late to plan for your retirement needs. The following facts illustrate the need for saving for retirement:
GRAYING POPULATION – 15% of the population today is age 65 or older, approximately 1 out of every 7 Americans. By the year 2047 (i.e. 30 years from now), 22% of the US population will be age 65 or older, approximately 2 out of every 9 Americans (source: Congressional Budget Office).
WHAT’S IMPORTANT – 54% of 4,200 American workers surveyed would switch jobs for a better retirement plan (source: Transamerica Center for Retirement Studies).
HARDER TO CATCH UP – A 30-year old employee that invests $500 at the beginning of every month in a tax-deferred 401(k) account will accumulate $588,032 by age 60 if the funds grow at +7% per year. If that individual was forced to suspend his/her monthly deferral for just 5 years from ages 35-39, he/she would have to earn +8.8% per year from ages 40-60 in order to accumulate $588,032 by age 60 (source: BTN Research).
RETIRE HERE – Social Security benefits are taxed by just 13 US states, i.e., 37 states do not count monthly Social Security benefits as taxable income at the state level (source: Internal Revenue Service).
Ann Arbor State Advisors provides advisory services for employer sponsored retirement plans. Please feel free to contact me if I can be of assistance to you.
Investments advised by Ann Arbor State Advisors: a) are not insured by the FDIC; b) are not deposits or obligations of Ann Arbor State Advisors, Ann Arbor State Bank or their affiliates; c) are not guaranteed by Ann Arbor State Bank, Ann Arbor State Advisors or their affiliates; and d) are subject to investment risk including possible loss of principal.