Welcome to Extreme Investor Network, where we provide unique and valuable financial advice to help you prepare for retirement and make informed decisions about your financial future. Today, we are diving into a recent study by Prudential that highlights the alarming trend of Americans with about 10 years before retirement being “critically underprepared.”
According to the study, 67% of 55-year-olds surveyed fear they will outlive their savings, and the median retirement savings for this age group is less than $50,000. This lack of financial preparedness could lead to a rise in what Prudential calls “silver squatters” – individuals who rely on family for housing and financial support in retirement.
Surprisingly, 24% of 55-year-olds surveyed expect family support in retirement, yet nearly half of them have not discussed this need with their families. This can lead to unforeseen challenges for both the retirees and their adult children.
As we approach retirement age, it is crucial to have open and honest conversations with family members about financial expectations and needs. Financial therapist Lindsay Bryan-Podvin recommends starting the conversation by discussing the impact of retirement on the family as a whole, rather than making assumptions about how family members will support you.
Additionally, experts suggest resetting expectations about retirement and getting creative about lifestyle choices. Instead of the traditional idea of aging in place, consider alternative options like roommates, cooperative living, or even moving in with adult children.
Understanding your financial picture is also key to a successful retirement. Make sure to have a clear inventory of your expected income from Social Security and savings, as well as your everyday expenses. Having a positive mindset about retirement and believing that a comfortable retirement is possible is essential, according to investment advisor Gregory Marc Corneille.
At Extreme Investor Network, we empower you to take control of your financial future and make informed decisions that will set you up for a comfortable and secure retirement. Stay tuned for more valuable insights and tips to help you navigate the complex world of personal finance.