Craft your own financial security plan
Since Social Security payments are likely to be insufficient, creating your own independent nest egg seems like an obvious solution. Robbins recommends setting a target to save at least 20 times your annual living expenses to fund a comfortable retirement.
On average, U.S. adults currently believe the “magic number” to retire comfortably is $1.46 million, according to the Northwestern Mutual 2024 Planning & Progress Study. This estimate is 15% higher than in 2023, even though Americans’ average retirement savings dropped to $88,400 in 2024, down nearly $1,000 from $89,300 in 2023 .
Simply put, most Americans know they need to be saving and know how much they need to save but are failing to actually act and accumulate cash.
A relatively simple savings and investment plan should help you stay ahead of the game. The average U.S. household income in 2023 was $80,610.
If you’re in your mid-30s and you have that kind of income, you can reach the $1.46 million milestone within 31 years by putting away 10% of that income ($8,000 a year or $666 a month) and investing it in a low-cost index fund that has historically delivered a 10% annual return.
If your retirement is less than 30 years off, or you're struggling to save because of debt and the cost of living, consider moving somewhere where the cost of living is lower.
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Discover the secretRetire abroad
Given the rising cost of living, lackluster Social Security benefits and lack of retirement savings, it’s easy to see why many Americans find it more appealing to retire abroad.
As of 2024, 21% of Americans said they would like to move abroad, up from just 10% in 2011, according to a Gallup poll. Meanwhile, the Social Security Administration recently reported that more than 760,000 retirees were collecting their benefits while living overseas.
Moving to a country with reasonable quality of life and lower costs of living, such as Japan, Panama, Portugal or Greece could be a solution for those struggling to beat the ongoing retirement crisis.
Push for change
Despite its flaws and insufficiencies, Americans broadly support the Social Security program and want their government to salvage it.
A January 2025 poll by The Associated Press-NORC Center for Public Affairs Research found two-thirds of Americans believe the government is spending “too little” on the Social Security program. An AARP survey found 85% of Americans support salvaging the program even if it means higher taxes for everyone.
According to the National Institute on Retirement Security, 87% of U.S. adults said the program’s funding should be a top priority for elected officials, regardless of the nation’s fiscal situation.
Given the program’s popularity, taxpayers should consider reaching out to members of Congress to push for funding reform.
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