People are living longer than ever before, and right now, interest rates are historically low. Good news, right? Yes, but these factors also mean that you need a much larger nest egg to retire today than your parents did. You’ll need to generate retirement income for a longer period, and you can’t count on money-market, savings account or CD rates to generate much interest.
In fact, statistical analysis indicates that it’s almost half as difficult to live off the same amount of money, adjusted for inflation, than it would have been 25 years ago. That means younger workers should save more, and those nearing retirement or in it should engage in financial planning to ensure they’ll have enough retirement income to enjoy their golden years.