Trey’s Tips & Tricks to Saving Money
TIP & TRICK #2 – WHY YOU SAVE FOR RETIREMENT
Trey’s “why” you should save for retirement: You want to save for retirement so you can eventually stop working—and you must have a source of income to pay for your life expenses once that day comes. (Unless you like cat food ?)
I, KK, never really saved for retirement because I just assumed I’d always be working. I think a lot of younger people feel the same way—that they’ll be able to work well past age 65. But the statistics say otherwise.
Most workers don’t work past the age of 65, and the reasons are often involuntary—such as personal health issues, family health concerns, layoffs, or company changes.
According to research from the Transamerica Center for Retirement Studies:
- The median retirement age in the U.S. is 62.
- Nearly 6 in 10 retirees say they retired earlier than planned.
- Almost half of those cited health issues, physical limitations, disability, or job loss as the reason.
As of 2022:
- Average life expectancy in the U.S. is 77.5 years.
- Men live on average to 74.8 years.
- Women live on average to 80.2 years.
But life expectancy increases with age. For example:
- If you’re a 60-year-old male, you can expect to live another 20 years.
- If you’re a 60-year-old female, you can expect to live another 24 years.
Right now, the average monthly Social Security payment is $1,976. But who knows if the Social Security system will still be around when we or our kids retire?
You must save for retirement to have the money you’ll need to cover your life expenses from the time you stop working until the end of life.
