Ernst and Young Study; Most will run out of money! July 15, 2008Posted by shaferfinancial in Uncategorized.
Tags: desitution, reduce standard of living, Retirement, running out of money, shafer wealth academy, wealth coach
The evidence has been coming in for more than a decade, but the mainstream institutions are just now picking up on it. Regular readers recognize it as a common theme. Here is a direct quote from the study:
“…Americans will have to drastically reduce their standard of living before retirement to live comfortably, or avoid destitution, later in life.” [bold by author]
The study goes on to pronounce that middle income workers have to reduce their spending 24% now in order reduce their chances of becoming destitute during retirement, these same middle income workers if within 7 years of retirement must reduce their spending 37%! And it gets worse from there. Workers with $75,000 income/year if they have other income aside from social security have a 37% chance of running out of money. This the the heart of the middle class that has developed other retirement income (a minority) and they have a better than 1/3 chance of running out of money!
Of course as accountants they suggest reducing your standard of living, but this is the first time I have seen anyone put a percentage figure on the reduction. So are you ready to reduce your standard of living by 24%?
If you have already belt tightened to you are unable to breath what do you do next?
Well here is just a tiny suggestion, call me! 727.804.9271. I have been helping people escape from this financial vise grip not by creating miracles, but by showing them how wealth is created, built and maintained and how they can do the same! Check out my web site www.shaferwealthacademy.com fill in the contact form and get started today. before it is to late.