The American social security program is both popular and miserable.
Experts have warned that the social safety net where millions of Americans are about to trust. Now Personal Finance author and motivating speaker Tony Robbins calls on people of all ages to start weaving their own safety net.
“Time to get your head out of the sand and what easy to grind to find out where you are and where you should be,” his website advises.
“Remember this: anticipation is the ultimate power. Loss reacting; expectations expecting.”
Robbins can preach to the choir. According to De Aarp, 74% of Americans believe that social security will not offer enough to live on during their retirement. Two -thirds of them also consider the monthly benefits too low to live on.
If you share these worries, you can do this to secure your financial future.
Because payments for social security are probably insufficient, creating your own independent nestei seems an obvious solution. Robbins recommends that you set a goal to save your annual costs of living at least 20 times to finance a comfortable pension.
On average, American adults currently believe that the 'magical number' is to retire comfortably is $ 1.46 million, according to the Northwestern Mutual 2024 Planning & Progress Study. This estimate is 15% higher than in 2023, although the average pension savings of Americans fell to $ 88,400 in 2024, a decrease of almost $ 1,000 of $ 89,300 in 2023.
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Simply put, most Americans know that they have to save and know how much they need to save, but fail to actually act and collect money.
A relatively simple savings and investment plan should help you stay ahead of the game. The average American family income in 2023 was $ 80,610.
If you are in the mid -thirty and you have that kind of income, you can reach the milestone of $ 1.46 million within 31 years by storing 10% of that income ($ 8,000 a year or $ 666 per month) and investing it in an cheap index fund that has delivered an annual return of 10% historically.
