MyAR (After Retirement) journey began with facing the stark reality that my income is now very fixed, and vulnerable to any unexpected changes or increased living expenses. Since I live in the highly expensive state of California, rising living expenses are a given. So are unexpected factors such as car repairs, medical or dental expenses, increased food costs, etc. My new fixed AR budget was a new scary reality.
According to AARP (American Association of Retired People) a good retirement income is about 80 percent of your pre-tax income prior to you leaving your workplace (https://www.annuity.org/retirement/planning/average-retirement-income/). The eighty percent number factors in not having to pay income tax, or paying for other job-related expenses. It does NOT factor in things such as cost of living in your area, everyday expenses, potential healthcare costs, and the lifestyle you desire. People often retire with a 401k, or a pension, or other investment sources, or some combination thereof. But many in the US are dealing with a retirement income that is nowhere close enough to 80% of any previous working income.
It is estimated that 36% of Americans now believe they will NEVER have enough money to retire, and roughly 41% say that their ability to be financially secure in retirement will take a MIRACLE (this according to the annual GRI-Global Retirement Index). In 2019, an alarming 22% of American adults were found to have less than $5000 in savings for retirement, with 46% saying they have no idea how much they have even saved at all.
Talk about bleak stuff. I am not the only one dealing with “inadequate retirement income syndrome.” This After Retirement life journey is going to be a creative one, to say the least.
