Making financial preparations for retirement is an essential step in your planning. But according to a study from the Employee Benefits Research Institute, many people simply aren't prepared to retire. What's the problem, and how can people avoid the same fate in their retirement planning?
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the EBRI study, noting that 36% of those surveyed have less than $1,000 saved for retirement. Debt is a major concern, with 58% of workers saying they have a problem with debt. Dan also notes that income disparities are an issue, with 36% of those earning $75,000 or more saying they're very confident about their retirement plans, compared to just 11% for those earning between $35,000 and $75,000, and 7% for those earning less than $35,000. Dan concludes that it's just that much more important to save no matter how much money you earn, while also making the most of other income sources that are available to you.
Your key income source in retirement
One of the most important ways people make ends meet in retirement is through Social Security, but many worry about whether they'll actually get all the benefits they're entitled to receive. Find out what you need to know about Social Security by reading our brand-new free report, "Make Social Security Work Harder for You," in which our retirement experts give their insight on making the key decisions that will help ensure a more comfortable retirement for you and your family. Click here to get your copy today.