Can You Live on $845.89 Per Month?
September 9th, 2008 -- Posted in Retirement, Wealth Strategies | 5 Comments »This article was provided by Wealth Masters International
If you think you can count on Social Security for anything resembling a comfortable retirement, think again.
Don’t just take my word for it. Here’s what the Social Security Administration itself claims :
* As of June 2008, the average monthly benefit paid to a retired worker was $1,084.47.
* In 2041, Social Security will only be able to pay 78% of scheduled benefits.
Put those two points together, and it means that in 2041, the average retiree can expect to receive the inflation-adjusted equivalent of $845.89 per month . That may be enough to squeak by on the most meager of lifestyles, but it’s also well below what a full-time minimum-wage job pays.
You deserve better!
By the time you reach retirement, you’ll have worked your whole adult life to get there. It’d be a shame to retire only to have to choose between taking your medicine or turning on your heater in the middle of winter.
But if you’re depending solely on Social Security to see you through your golden years, that’s precisely the type of choice you’ll have to make.
Unless you’re one of the vanishing few who can depend on a guaranteed pension for the rest of your life, you’re left with just one other source for your retirement income: You.
What you save over the remainder of your career will make the difference between a comfortable retirement and one filled with exceptionally tough choices.
Every little bit helps .
As long as you draw a paycheck, you have the opportunity to set some of it aside for your future needs. The more time you have, the more your money can grow for you.
Start by looking at the potential growth of $1,000 over time. Even if you’re a late starter, investing what you can as long as you can will make a significant difference.
When it comes time to spend your savings in retirement, the rule of thumb is that you can spend 4% of the starting value of your nest egg annually, adjusted for inflation, without running out of money. That same $1,000 saved and compounded over time turns into this much in monthly retirement spending:
A little bit saved over a long period of time can add substantially to the amount you can spend in your retirement. That’s a welcome supplement to (or replacement for) the ever-shakier payouts from Social Security.
You can do it!
How do you feel about those numbers? Leave a comment for us 
Until next time, J
"Take control of your destiny or somone else will"
