Byte of Prevention Blog

by Jay Reeves |

Half of Retirees Lack Sufficient Savings

Close to half of baby boomers are reaching their golden years with little to no money in the bank.

That could mean a most unpleasant retirement.

“Fewer than half of working-age Americans have any retirement savings, according to Census data for 2020,” according to The Hill. “And that is a problem. A newly minted retiree of 65 can now expect to live 20 more years, on average, according to Social Security projections. Without a retirement account, most retirees count on Social Security. The average monthly Social Security check to a retired worker is around $1,800. The average household run by an American older than 65 spends more than $4,000 a month.”

Many Boomers suffer from wishful thinking, says business writer Daniel De Vise.

“By one rule-of-thumb retirement calculator, workers should aim to save 10 times their annual salary by age 67: $375,000 for an individual, and $708,000 for a household, based on median incomes,” writes De Vise for The Hill. “If the goal is to retire in relative comfort, Americans assume they will need something closer to $1.1 million. But the average retirement account held just over $100,000 at the close of 2022, according to a Fidelity analysis.” 

“More than half of Americans will eventually need long-term care,” according to The Hill. “Someone who turns 65 today will incur $120,900 in future long-term care costs, on average, by one estimate. But an analysis by the National Council on Aging found 60 percent of older adults could not afford two years of long-term, in-home care.”

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Long-Term Care Options for North Carolina Lawyers

In North Carolina, the average cost of care in a skilled facility can exceed $8000 a month. Medicare usually covers only 2% of long-term care costs. A carefully designed Long-term Care plan can supplement your projected retirement income or completely cover the cost of an illness.

Lawyers Insurance Agency offers a discounted plan for NCBA members and spouses. The agency works with firms to implement group coverage. Misty Smith is the LIA long-term care insurance specialist, having worked with NCBA members through Lawyers Insurance Agency since 2003.

SOURCES: Nearly half of baby boomers have no retirement savings | The Hill;

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