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This week, October 21-27, is National Save for Retirement Week. Are you saving enough?
 Consider this:
The average monthly Social Security benefit for a retired worker was about $1,230 at the beginning of 2012. This amount changes monthly based upon the total amount of all benefits paid and the total number of people receiving benefits.
The average Individual Retirement Account, or IRA, balance of an American worker is only $91,000 (all accounts combined - source: ERBI). Is that enough?
A lump sum of $91,000 can produce around $490 per month guaranteed for the rest of a man's life, and about $449 per month guaranteed for the rest of a woman's life, starting at age 65, using a plain vanilla retirement income IRA. On the other hand, if one puts their IRA in a bank CD, the best 1 year CD today would pay $53 per month, and the best 5 year CD would pay $107 per month, using the same $91,000 lump sum.
The average worker in America earns $42,971, or $3,580 per month (source: Social Security Wage Index). To replace that monthy income at retirement, if we subtract out the average Social Security retirement check of $1,230 per month, one needs $2,350 per month.
The lump sum required at age 65 to guarantee $2,350 per month for the rest of a woman's life is $473,351, and for a man one will need $432,293, if we used a plain vanilla income IRA.
To get the same $2,350 per month using the highest paying 5 year CD in America today, a person age 65 would need $1,985,915 in their IRA.
Do you think that you need so save more for retirement?
If you have questions, or want some help with your retirement planning, call me today (800) 680-5596, or send me an
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