STAGE 1  -START YOUR PLAN BY DRAWING ON THE EXPERIENCE OF OTHERS-

By Ron Iverson, Copyright 2007

First, let's compile a short list of the experience of others--some misconceptions which caused problems--and find some solutions in this series of the blueprint.  Take a look at what to expect, face it, prepare for it, solve it, and move forward.  In other words, educate yourself and start to solve these problems for yourself now.

Experience Example No. 1.  "We thought we'd have enough savings to live comfortably in our retirement, but that doesn't seem to be the case."
 
INADEQUATE SAVINGS--  Starting savings plans, no matter how late in life, is one
solution to the inadequacies of Social Security and Pension income. However, savings rates for average Americans during the last decade have been shamefully low.  In fact, according to the US Department of Commerce, personal savings rates in June of 2005, hit ground zero.   Many feel that the normal cost of living and tax burdens prohibit savings.

In the retirement saving arena many people--most of the masses--lag far behind.  In December, 2002, a Congressional Research Service analysis of Census Bureau data discovered that "More than half the paid workers ages 25 to 64 don't own retirement savings accounts of any kind.  Of older workers ages 55 to 64, three out of four lived in households with retirement savings of zero to $56,000." 

The truth is that traditional savings plans are falling behind, as a source of income for retiring Americans.  In fact, would it be proper to say that many American families spend more than their income in any (every) given year?  In light of the ease with which Americans are able to obtain multiple high limit credit cards, today's consumer has fallen into a "buy now, pay later" mindset.    

An "Allstate Financial Reality Check" found that 78 percent of boomers felt they were ready for retirement and 69 percent said they knew how much money they would need to maintain their desired lifestyle.  However, the problem is that $30,000 (total) was considered as the "necessary amount."

In May of 2005, The Fidelity Retirement Index found that "the typical American household has saved $18,750 for retirement and expects to cover the majority of retirement costs through Social Security and pension benefits." 

As you can see, creating a position of inadequate savings is not exactly good news for people expecting a comfortable retirement scene expected to last as long as three decades.