Many young professionals may want to review their personal finance plan at an early age in order to ensure they will retire comfortably and on time. A sizable portion of elderly Americans may not have done this exact thing, which could have an effect on their retirement viability.
The majority of senior citizens in 48 of the 50 states are not at a goal of 70 percent of their total income per working year in retirement, according to a report from Interest.com, which used information from the American Community Survey from the Census Bureau. Despite the issues with 70 percent, nearly 20 states, as well as Washington, D.C., had an ability to match 60 percent of the needed income. At the national level, the average income for senior citizens was less than 60 percent of those who were between the ages of 45 and 64.
“People who live in a given area are competing with each other for the same goods and services, including housing, cars and groceries,” said Mike Sante, managing editor of Interest.com. “This is why we thought it would be useful to compare younger and older adults’ incomes in each state. We found that many senior citizens are significantly underfunded and risk running out of money, especially since people are living longer than they used to and may need to support a two- or three-decade retirement.”
This type of situation was echoed in another report. Only 13 percent of Americans were completely confident in retiring comfortably, according to a report from the Employee Benefit Research Institute. Less than 40 percent noted they are somewhat confident in their retirement prospects at that time.