Are you on target for retirement, and what can you do to get there? Watch this week's Arista Advice to find out.
Hello, welcome to Arista Advice. Question of the week is: "Paul, am I on target for retirement?"
Many people ask this question internally and vocally. May I share with you a study from Fidelity Investments that they've been conducting for the last 17 years? They've been asking this question "Are Americans prepared for retirement?" It features a unique retirement score. It takes a look at the overall state of retirement readiness of American households.
This year the study factors in comprehensive data from over 3,200 respondents, which are then run through the extensive retirement planning platform Fidelity uses every day with their clients to prepare and to find out the readiness of retirement. The end result was a single score to simplify and consolidate to a one page number.
Guess what the number is for 2020? Well, the number for 2020 is 83%. For the first time ever American households are in the green. So let's talk about the colors!
Dark green, as you'll see here, the dark green is on target which means that 96% of retirement expenses are covered. Only 37% are in that range.
Green, it's at least 81% of retirement expenses are covered, and that is 17%, and yellow at least 65% of your expenses are covered, and that's 18%, and red, not a good color to be, that's saying that 65% of your expenses will be covered. Over the past year, we have seen a lot of people move from the yellow-green to the green, dark green, which is wonderful and exciting.
No matter how prepared you are for retirement, there are steps you can take today that will help you feel more confident and ready for a safe, secure, and comfortable retirement. Here are three key actions people can take to improve their retirement readiness - number one: save more than you are currently saving.
Number two: invest appropriately for your time frame, financial situation, and risk tolerance, and number three: delay retirement or have a semi-retirement period where you can still be earning something to help cover some of the expenses.
Thanks for listening. Remember to go to AristaWealth.com to get other videos, tools, tips, and resources to help you live your optimal life. Don't forget to subscribe, rate, and review, and we look forward to talking to you soon.