Retirement in NC: Are you Prepared?

Retirement. This word should bring about positive connotations of being able to relax in your old age, however, for many it is a thought that they try to avoid. In a recent study put together by the American Advising Group (AAG), they looked at the different retirement habits of people across the United States and some of what they found could be cause for concern.

Half of Americans are not saving for retirement at all because they are focused on paying off credit card debt, paying off their mortgage, paying for healthcare expenses and supporting their children. Only 26% of the workforce prioritizes saving for retirement, while 21% are focused solely on just getting by and 17% prioritize paying off debt.

Looking to the future, the US census information shows that currently, 617.1 million people worldwide (or 9 percent of the world population) are over 65 and that number is set to almost double by 2030 and triple by 2050. This increasing number of people entering the age of retirement has a number of causal factors: the baby boom, advances in medicine and technology prolonging life, etc. This growth can be concerning for those who will need to depend on government aid in their old age. The concern that retirement is becoming increasingly more difficult is also shown in the AAG study where they found that 30% of the workforce in the United States does not believe they will be able to maintain their standard of living in retirement and 82% believe that it will be more difficult for them to achieve financial security than it was for their parents. AARP reiterates this claim, with an entire article on how baby boomers are going to have a more difficult retirement than their parents and even those retiring only 10 years before them.

So where are you in terms of how prepared you are for retirement compared to others in North Carolina? For this state, the study showed the average retirement savings were $241,808, which was slightly higher than the national average of $218,181 (likely due to lower prices of living in much of the western United States). It’s really never too early to start saving and thinking about your plan for retirement. For those that feel financially secure about their retirement funds, another point of concern could be what to do with all your newfound free time. In North Carolina, 23.9% of retirees volunteer at various organizations across the state. You can easily find one that speaks to you and dedicate a certain amount of time a week to helping others. Many people in retirement feel that volunteering gives them more of a purpose and allows them to continue to contribute to their community and remain social. Another popular pastime of those in retirement is golfing. This sport is low impact but allows you to be active and spend time outside for a good portion of the day. In North Carolina, there are 2,212 retirees per golf course (many of whom don’t golf) so finding a tee time is no challenge.

Retirement can be daunting for a number of reasons. Saving for retirement is no easy feat and for many doesn’t feel like an option. However, it’s important to start saving as soon as you can, even just a little at a time, and look into other financial options that are available to those in retirement. This way you can make the most of your retirement years.