Retire or Retire Comfortably?
According to The Federal Reserve many Baby Boomers are entering retirement with only 25% of what they need financially to maintain a similar standard of living. Even households with 401k plans as their main retirement, on top of Social Security, will be short by about 35-40%.
"In fact, there is a $6.6 trillion shortfall between what Americans need to retire and what they will have."
Do you feel comfortable with your income to expense ratio? Are you looking for ways to narrow the gap? Living internationally could be an answer. According to various sources, you can save about 30% off your expenses by moving to Mexico or Panama. Save 45% to 60% by living in Ecuador. Of course these figures will vary greatly depending on where you live and what your needs are for retirement. But how do you know if this is the right choice for you? Sources:
Wall Street Journal E.S. Browning, Retiring Boomers Find 401(k) Plans Fall Short
The Federal Reserve
Center for Retirement Research at Boston College, New York Life Insurance Co.
AARP, March 2011 Boomers Mean Business
ExpatDailyNews.com – The Cost of Living in Ecuador – 2010
FocusOnMexico.com – Cost of Living in Mexico