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Anonymous asked in Business & FinancePersonal Finance · 2 months ago

Should I be worrying about money? I only have $72000 in retirement savings and I am six years until planned retirement?

I am kind of worrying about my retirement. I would of thought that I would have more savings by now but all I have is $72K.

I will be sixty next year and I am starting to worry about the future and my life during retirement.

How can I increase my savings and should I be very worried about my situation?

10 Answers

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  • GA41
    Lv 7
    2 months ago

    Don't worry, it accomplishes nothing.  However, I would try to have my home paid off and save as much as possible before retirement.  I would also develop a budget to figure out how to live on my social security check and any pension I might have.  72,000 will only practically generate about $2,880/ year in income using the 4% rule normally recommended by financial advisors. ---->25 “Therefore I tell you, do not worry about your life, what you will eat or drink; or about your body, what you will wear. Is not life more than food, and the body more than clothes? 26 Look at the birds of the air; they do not sow or reap or store away in barns, and yet your heavenly Father feeds them. Are you not much more valuable than they? 27 Can any one of you by worrying add a single hour to your life[e]? (Matthew 6:25-27)

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  • 2 months ago

    You shouldn't worry, but you shouldn't count on retiring. EVER.

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  • 2 months ago

    $72K is terribly inadequate for retirement.  However, do you have a pension and/or company retirement program like a 401k with a balance of at least $300K?  If so, you MIGHT be able to squeak by.

    Here are the things you must do right now:

    1.  Forget retiring in six years.  You won't have enough cash flow to support yourself after you retire.  Plan to work for AT LEAST 10 more years.

    2.  STOP SPENDING.  Live as frugally as you can.  This is going to upset you, but you need to IMMEDIATELY cease anything that is not a bonafide necessity.  Stop cable TV, eating out, booze, entertainment, vacations, brand-name and luxury groceries, unnecessary driving, charitable payments, cell phone service, non-necessary apparel, etc.

    3.  Sell off all assets you don't really need, and downsize your housing.

    • STEVEN F
      Lv 7
      2 months agoReport

      ANY 401(k) balance would be PART of the 'retirement savings'.

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  • Anonymous
    2 months ago

    I don't think you would be able to survive off of that amount.

    You would need stable income coming in that's high enough, for you to survive, for the remaining years you have left. I think relying on $72000 to support you, for your remaining years would be a mistake. Because you would be subtracting your money, for your expenses, and then eventually you will be broke, and this should not take too long.

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  • Anonymous
    2 months ago

    Make sure your house and car are paid off.  Down size your house if you have to (move to a rural, less expensive area).    Know how much your minimum monthly, required expenses are; utilities, RE taxes, insurance, food etc.   Compare that to your estimated SS income (log into SS.gov to find out) to find out your gap.  Right now full retirement age is 66yrs + 4 months but you could wait until 70 if your health is good.

    Plow as much extra money as you can into your retirement savings and regular savings and eliminate all debt.  People who think you need a million to retire are living a much higher lifestyle than required. No one knows how long they will live.

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  • Anonymous
    2 months ago

    Yes, you should be worried.

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  • Anonymous
    2 months ago

    You must be trolling.

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  • Rick B
    Lv 7
    2 months ago

    You should be extremely worried. How much do you need in retirement? Most people need about 75% to 80% of their working income. If you earn $100,000 you should expect to spend about $75,000 in retirement. Assuming you will get about $40,000 in social security, that would leave a gap of $60,000 a year to fill.

    With your $72,000, you can only expect to withdraw 3% to 4% per year if you want that principal to last you for the rest of your life. Lets assume this amount doubles to $150,000 by the time you retire, you can only withdraw about $6,000 a year.

    This means that you will drastically need to change your lifestyle. Again, I have no idea how much you earn now or how you expect to live in retirement.

    If I were in your shoes, I would MAXIMIZE contributions to a ROTH IRA. That will give you some tax-free income in retirement. Assuming you are over the age of 50, you can contribute $6,500 a year. Over six years, that will increase your savings by $39,000. Hopefully you can earn about 5% on that money over those six years.

    You should also maximize the amount going into any employer-sponsored plan, especially if they offer a match.

    I am not really sure how someone could work a lifetime and only have $72,000 in retirement savings. The stock market has returned huge profits over the last few decades.

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  • 2 months ago

    maybe but you're still ahead of the average for  your age group.

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  • Anonymous
    2 months ago

    I "would of" thought that someone your age would have better grammar than that.

    • Kid Mohawk
      Lv 5
      2 months agoReport

      A grammar Nazi.  Damn son, you're living on the cutting edge of trolling.

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