Financial Wellness and Retirement

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( — May 7, 2018) Syosset, New York —

Most, if not all, Americans aspire to what’s called the American dream – they want to have a job, save money, own a home and eventually retire in comfort. They’re looking forward to a future of financial wellness and security, but unfortunately, for many older Americans the dream is just that… a dream.  

More than half of all Americans have absolutely nothing saved for retirement and 35% have under $1,000 set aside in case of an emergency. Making sure that you’re prepared for retirement and emergecnies is essential for future financial wellness and security. 

For many, actually confronting the fact that time is going by and they may be hitting retirement age sooner than they think, is a really tough thing to get their heads around. And Americans are living longer than ever. Research suggests that some people may need to provide for 38 years of retirement.

How much you need to save for retirement will depend entirely on your spending habits. Even someone who saves $2 million will run out of money in retirement if they spend extravagantly and don’t adhere to a budget. Whereas someone who has only $500,000 might live comfortabl,y if they have a lifestyle that does not require much cash.

Plan Your Retirement Budget

One budgeting strategy is to plan on needing between 70-80% of your pre-retirement income during retirement. This is based on the assumption that you will no longer need to support children, you may have paid off your home mortgage, and you won’t have employment expenses like clothing, commuting, eating lunch out, etc.

However, these “savings” can easily be offset by unknown variables, such as inflation and additional unplanned expenses, especially if you plan to live an active retirement lifestyle. The future cost of healthcare is an especially big unknown. If you want to travel extensively, entertain and eat out frequently, or participate in expensive hobbies during retirement, be sure to factor these costs into your retirement cost-of-living budget.

Over time, inflation erodes the value of your money and reduces your purchasing power. As a result, a dollar in ten years will likely buy you less than a dollar today. What cost $1 in 1990 would cost you almost double that today ($1.84).

Retirement Lifestyle 

Many people enter retirement with no idea of how they will spend their time. Start thinking now about the activities and hobbies you want to pursue when you retire. It doesn’t really matter what they are, the important thing is that you have a plan designed to keep your mind, body, and financial security in good health.

Now’s the tme to plan for the future and ensure that when you reach retirement age you have the funds to enjoy your gollden yars.  Set a retirement budget and work out how to achieve the goals you have set. Find a reputable financial advisor who you trust and you can work with.


Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual’s personal circumstances. Member FINRA & SIPC

About David Lerner ASsociates

Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY

David Lerner ASsociates

477 Jeriocho Turnpike
Syosset, New York 11791
United States