For a large number of Americans a major fear in their lives is saving too little for retirement, and recent studies have shown that the majority of Americans fear insufficient retirement savings over death. Running out of money is a fear we all share, and nobody wants to be in a position where they have no savings going into their 70’s. But what are the chances that you will actually run out of savings during your years of retirement?

Unfortunately for a large number of Americans, researchers at the Employee Benefit Research Institute (EBRI) have recently said there is a very good chance that many Americans will start to run out of money. Looking at the facts and figures, the data they have produced is shocking. The good news however is that if you realize you are going to be in a position that will see you running out of funds moving into your later years of retirement there are steps that can be taken to improve your chances to become a retiree that has enough money saved.
How to prevent yourself from running out of money?
With such a big number of financial shortfalls for many Americans, the best solutions would likely require the government to implement many systematic changes. What we would like to see is a Social Security benefits that would provide a greater income for retirees or even policy changes that would include broader access to a set retirement plan. ERBI found in their research that eligibility for a 401/403k for many Americans has a detrimental impact on the retirement deficit. For many individuals between the ages of 35 to 39, they are simply not eligible for a defined retirement plan now or in the future, the retirement deficit has been analyzed and analysts predict that it is set to be $78,046 USD which is over five times the average retirement deficit that most individuals with over two decades of future eligibility in a defined plan face.

In a time of political uncertainty however, it would appear that policy changes are a pipe dream for most. If nothing changes within the government sector, the only way to protect yourself when you go into retirement is to ensure that you have more than enough savings for retirement. What is suggested is that you aim to save 15% of your income to contribute towards your retirement fund, although this may seem difficult for most households to ensure your comfort in retirement it is a must. With the retirement deficit being a major problem both in the US and around the world, the best plan people can have is to create a secondary source of income, or work with a brokerage who specializes in retirement planning.


Sally King – AMT Associates