Thursday, December 9, 2010

Retirees Expect to Live on $190 a Month of Retirement?




Retirement Funds of $190 a Month?

In a survey done by Wells Fargo, 2,000 Americans aged 20 – 60 were asked how much they’re expecting to live on every month for their retirement. On average, it was found out that they’ll only have a budget of $190 per month.

This survey revealed a few things that should be a cause of concern. First, it was found out that Americans don’t have enough money in their savings for retirement and they may end up working even after they’re retired from their original jobs. Secondly, they’re underestimating the funds needed to live off of their retirement savings.

The figure was gotten on the respondents’ prediction that they’ll have $300,000 to spend for the 19 years of their retirement. For people in their 50’s, they only have savings of $29,000 on average which leads to $190 a month for 20 years if there’s a 5% return rate.

“$190 a month is not going to cut it,” said Laurie Nordquist. “This reinforces the huge gap in terms of what people are going to need and what people have. They have a little time to add to that nest egg, but it’s a huge shortfall to recover,” she followed. Nordquist is the co-head of Wells Fargo Institutional Retirement and Trust.

Read More

http://www.allabouttopnews.com/retirees-expect-to-live-on-190-a-month-of-retirement/851376/

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