Stormy, husky, brawling, City of the Big Shoulders. Hi, I’m Scott Carter and yes, I am in Chicago. As Carl Sandburg called it, the City of Big Shoulders. We also know it as the Windy City, but this is the city where manufacturing in the early days was the key place and Chicago is one of those great cities where the people are wonderful. It is classic Midwest.
I’m here and I was talking with individuals about retirement and I wanted to put a little video together because the last time I spoke to you, I said, “How much does it cost to retire?” And I told you that an easy calculation is to take 25 times the income you’re going to need in retirement. So if you need $100,000, 25 times would be two and a half million. And today, I just want to briefly say, well how in the world are we going to pay for that?
Well, retirement is also taking advantage of those things that we pay in over the long term. Now all of us, or for the most part if we’ve worked for a living, we have paid into social security and social security is not that bad of a deal. Social security, on average, if you’ve made decent money in your life and you’ve worked a long time, social security will provide for an individual probably $30,000 a year in retirement for the length of your retirement. And if you’re married with a spouse, they either get what they paid in or what they eared in social security, or they get half of what you paid in.
So therefor, if you are married and you both worked, you’ll probably get around $40,000 for social security retirement. And if you look at that number, that’s a significant amount of money based on how long we’re going to live. So anchors in retirement are important. Social security is one that we all usually get. If you have 10 to 15 years left and you can put money into an annuity, you should consider doing that. Maybe you have a pension from a prior company. That’s a retirement anchor.
Anyhow, when you put these things together, you realize that you’re well on your way to retirement, but we still need to save a lot of money because the length of time that we’re going to live in retirement is significant. Mortality rate says that if you’re a man, you’re going to live until you’re about 82. If you’re a woman, 85. So we’ve got to be prepared and save money.
So here in Chicago, and the building that you’re seeing behind me is the famous Wrigley Building where people work, where the middle class, the Rust Belt is here and working hard every day. Also think about how much you need to set aside to prepare for your retirement and you’ll be well prepared to take advantage of great things like seeing the Wrigley Building, or Millennium Park, or go down and see Soldier Field because Chicago has a rich history and you’ll love to see it. Have a great day and we’ll talk next week.