Readers of The Seniors Center might recall how we recently discussed the senior savings crisis.
This alarming situation highlights the deficiencies in senior savings, specifically for those very close to retirement. As a refresher, retirement savings are at around an eighth or even a tenth of the recommended $500,000 as suggested by retirement planning experts.
How does this translate to the average retiree’s budget and finances? Let’s take a look at the numbers.
Senior Savings Could Be Depleted Fast in This Economy
If you have savings that fall in line with the numbers above, that translates to around $50,000-$62,000. How far will this amount go in a period of 20 years? Your average monthly withdrawal would be between $200-$250. Now consider how this would stand up against average expenses.
Many seniors spend over $7,000 per year on healthcare. This includes insurance, doctor visits, and also drugs and medical supplies. One year of these costs could wipe out at least one-seventh of the above savings amounts. Even if you’re lucky enough to be healthy, you still need a place to live. How about rent?
While some estimates put the average rent at $1,500, assisted living can cost three-to-four times as much. Add in utilities and other living expenses, and it’s easy to see how savings are falling short.
What’s the solution? Seniors shouldn’t have to rely solely on their savings. If Social Security was managed responsibly, it would be paid out in full to keep up with rising living costs — and that’s our goal.
Help The Seniors Center Protect the Future of Social Security
The Seniors Center is committed to finding solutions to strengthen and protect the Social Security Trust Fund. Social Security is a contract between citizens and the government. Money deposited in the Trust Fund should only be used to pay benefits to eligible recipients.
The Seniors Center is demanding Congress finally put a stop to the careless borrowing and spending by greedy politicians that has put our Trust Fund and our secure retirement in jeopardy.
At The Seniors Center, our goal is to help seniors, and we’re doing that by protecting the future of Social Security. Retirees shouldn’t have to worry about losing their hard-earned benefits to taxes or the agendas of greedy politicians. If you agree, we invite you to sign our petition today! And follow The Seniors Center on Twitter and Facebook for more updates!
