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6 Tips to Save Enough to Really Retire

Only 21% of us are “very confident” we can retire comfortably, according to a report by Employee Benefits Research Institute (EBRI). Many experts now advise that retirees withdraw no more than 2.8% of their retirement savings each year, down from the previous recommendation of 4 percent.

“Anything more than that significantly increases your chances of running out of money in retirement,” says financial expert and New York Times best-selling author Pamela Yellen. “Given that rule, with a nest-egg of $250,000, you could withdraw just $7,000 per year…. That $583 a month is all you’d have to supplement your Social Security income, which currently averages $1,341 per month. Even if you manage to sock away $500,000, that’s just $14,000 a year you can safely take from it. And if you hit the $1 million dollar mark, well now you can take all of $28,000 per year.”

Here is Pamela’s 6-Step Action Blueprint to Protect Yourself:

Acknowledge the Problem: A lot of folks have their heads in the sand. They hope that if they ignore the problem, somehow it will go away. It won’t. And the longer you wait to get serious about it, the harder it’s going to be, and the more hopeless you’ll feel.

Increase Your Savings by 1% to 2% Every Year: If you do that, you won’t feel the pinch, and you’ll be surprised how much faster your nest-egg will grow.

Don't Underestimate How Long You'll Live: According to the Social Security Administration, 25% of people turning 65 today will live past 90, and one out of 10 will live past 95.

Don't Underestimate the Impact of Inflation: Even if inflation remains low for the next 30 years (it won’t), the impact can be devastating.

Don't Count on Working Longer to Make Up for Your Savings Shortfall: The EBRI survey found that 65% of workers plan to work for pay in retirement. Yet 46% of retirees were forced to leave the workforce earlier than planned, due to health problems, disability, or having to take care of a loved one.

Prioritize Building an Emergency Fund Equal to Two Years of Your Household Income: The standard advice of having 3 to 6 months of expenses socked away won’t cut it. And though this may sound harsh, you have absolutely no business investing a single penny of your hard-earned money until you have that sizable emergency fund.

To help investors achieve greater financial self-sufficiency, Pamela advocates a savings method now used by more than 500,000 people that has delivered positive annual growth for more than 160 years, without the risks and volatility of stocks and other investments. Learn more by visiting

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