Why Personal Retirement Funds May Not Be Enough

• Author: Muriel Robel
• Posted: 2024-10-02

The average retirement age is hovering somewhere between 65 and 70 years, and it's going up every few years due to the fact that so many elderly people have to return to work because their Social Security Income (SSI) isn't enough to even pay their monthly rent, much less also buy them food, fuel, and pay for all sorts of insurance and other expenses. The official numbers from the Social Security Administration state that seniors earn an average of $2,485 per month; however, this is off-set by wealthy people who actually draw over $4,300 per month because they were in the top income bracket during their career, which means they paid the most taxes. Yes, these people still draw a check, even if they don't need it. Most Americans just get a little over $1,400 per month now.

This is a scary thought for a lot of people planning their retirement, and so there are millions of people who aren't thinking about relying on social security; rather, they're saving up money and investing in order to retire with a nest egg. Most people figure the math up to roughly 30 years worth of income, which for most means they're looking to have a little over $1 million when they retire. Though based on the past two years, those personal funds might not be nearly enough to retire with.

The idea here, generally, is that around $33k per year can carry a senior. Most seniors will own their own by this point, and be on Medicare and not have to pay monthly insurance premiums. So they're paying mainly for utilities, food, fuel and other odds and ends, which $33k annually more than covered some years ago. That's how the $1 million mark became standard. However, this was pre-inflation in America's economy, and during a time where the federal government wasn't transitioning America out of the oil industry, which is causing oil prices to rise to unimaginable heights.

The sad truth now is that saving up a million dollars will not give you a comfortable retirement at all. The average life expectancy is in the mid 80s, though most seniors plan to live into their 90s, which is why they're generally aiming for 30 years worth of savings to retire with. The biggest issue is that America hasn't even started to see inflation yet. Hyperinflation is coming; it's inevitable. Despite what the politicians say when they stand up on a stage, the demonstrable fact is that the Fed will not stop printing money, and this is objectively what is causing inflation to soar. This money is needed so that the federal government can keep spending hundreds of billions of dollars every year in foreign aid. Where that money ends up, that's another story. The facts just illustrate how that money is causing inflation, and it's going to keep climbing.

That means the US Dollar is being devalued. The government will tell you that inflation is only 7%, give or take, yet the Dollar in America is worth literally one nickel compared to its original value in the 1950s, and that's dropped around 60% in just the past two years. A million dollars right now has the spending power of what $200,000 had at the turn of the century. Just imagine how little it will stretch when you finally retire.
 

The Federal Government Treats Seniors Like the Homeless Population

So, if a million bucks isn't enough for your retirement in this modern age, does that mean you should rely on SSI to pull you through your senior years? Unfortunately, that's not going to work either. While the government does offer Cost of Living (COL) increases to go along with inflation, the issue is that these increases only support the fake, manufactured numbers the government pushes out to make itself look good. In other words, SSI increases are only 7% now, when groceries, fuel and other items are up over 50% at a minimum. Everyone knows the government is lying about inflation, but only half the population cares, and that half calls the other half "fascists" and claims that they're somehow hurting democracy for pointing out the truth.

Yeah, the politics of it is one giant mess, so SSI isn't going to support you. The truth is that you'll just have to save more and make smarter investments. If you think a million is going to get you by, try what you can to double that to be on the safe side. Invest in IRAs with bigger returns, and look harder at precious metals. Do what you can now to increase your savings.