FINANCIAL INDEPENDENCE - RESEARCH
FINDINGS
Most of us start out in life with similar goals, among
them to slow down at some
point and eventually stop working. Of course, in order to do
that we must have a source of
income to replace our earned income, which would stop when we
ceased working. In other
words, we want to be financially independent.
What is the likelihood we can achieve financial
independence?
A recent study by the ACLI** has examined this question and
provides the following
information:
For every 100 people starting their careers ... By Age 65
...
* 25 Have Died
* 20 Have Annual Incomes Under $6,000
* 51 Have Incomes Between $6,000 and $35,000
* Only 4 Have Incomes Over $35,000
None of them planned to fail -
they simply failed to plan.
According to the recent ACLI survey, the American people are
deeply concerned about
their prospects for financial independence. Over 70% of the
people believe they won't have
enough money at retirement. Of those between the ages of 30 and
54, almost 80% feel this
way.
One of the factors in their uncertainty is Social Security.
In the mid-70's, two-thirds
of those surveyed said they were confident that Social Security
benefits would be there
for them at retirement. In the 80's this was completely
reversed. Two-thirds said they
were not confident that Social Security would be there at
retirement, and if it were, it
would not be adequate to provide a reasonable standard of
living.
There does seem to be agreement on one thing. To be
financially independent at
retirement requires putting money aside while you're working
and earning income - even if it
means making some short-term sacrifices along the way.
** Source: ACLI (American Council of Life Insurance).
