If you're like many Americans, you may not be setting aside enough funds for the future. Experts say that unless special measures are taken now, there's a significant risk that many Americans particularly baby boomers, born from 1946 to 1964 may fare worse in retirement than their parents. A TIAA-CREF survey of retirees reports that participants who began retirement planning before age 40 are more likely than others to say that their standard of living has improved since they retired and that they were financially well prepared for retirement. About two-thirds of respondents who began retirement planning after age 40 felt they should have started earlier.
Retirement can last a long time.
It's not unusual for Americans to spend twenty or more years in retirement. Not only are people retiring earlier, but they are living longer. With medical improvements and healthier, more active lifestyles, life expectancy is at an all-time high. It's now more important than ever to make sure you have adequate financial resources to last throughout your retirement years no matter how long. If you're like most people in education, it's likely that your retirement income will come mainly from three sources Social Security, employer pensions, and additional savings.