Many people work hard all their lives to live comfortably in the United States, but it is impossible to achieve this wish without a certain amount of savings.
According to a new study published by Schwab, Americans typically save $1.8 million to support their old age, up from $1.7 million last year, and housing prices are at an alarming rate**.
How can it be so expensive?
The first factor is inflation.
It's no secret that inflation has become the focus of attention, although in June, inflation has gone from a 40-year high of 9 a year ago1% to 3%, but the survey shows that high inflation is still the biggest disincentive for people to save, with 62% of respondents saying inflation is holding back their savings.
Secondly, there are medical expenses and medical expenses.
Although retirement in the United States is relatively long, most people retire early.
The retirement age for Americans is 62 years, which is a common phenomenon.
However, Medicare (most Americans have reached retirement age, and the U.S. federal ** has health insurance programs) is valid at age 65.
However, Medicare (most Americans have reached retirement age, and the U.S. federal ** has health insurance programs) is valid at the age of 65, during which time the GP will take 3 years of expensive commercial health insurance, of course, provided that you do not get sick within these three years.
Over the past year, more than 4,200 drugs have seen price increases greater than inflation, while the average cost of drugs has increased by 15, according to the U.S. Department of Health and Human Services2%, which is $590.
As a result, many people are forced to withdraw money from their retirement accounts and incur penalties to pay off medical bills.
Next is health care, taking California as an example, by 2024: the average cost of home care and/or home health aides will be $80,005 per year; Family housing: The average rent for semi-private housing (semi-private housing) is $128,428.
It can be seen that in order to retire in the United States, it is necessary to prepare in advance. So, how should we arrange our retirement instead of "going back into poverty because of old age"? In fact, it is not difficult to retire in the United States, the key is to make your own economic plan so that you can walk on all four legs! How can Americans save enough money to retire?
Social Security PaymentWhen you accumulate 40 points (more than 10 years of working hours), you can enjoy social security from the age of 62. According to a social security fund released by the U.S. Department of Security in 2023, the average pension per capita is about $1,657, and if you don't pay taxes or work short hours, it will be significantly reduced, and these funds alone will not even be enough to maintain your life.
Newcomers who pay less than 40 points in taxes will not get social security at all.
There are two main types of personal pension insurance system based on personal responsibility and voluntary participation, one is a conventional IRA and the other is Roth IRA, many people in the United States may be afraid that their taxes will be too high in the future, so they will save money as a pension.
Roth IRA: The money deposited into the Roth personal account is taxable income and therefore cannot be used as a tax deferral. The maximum amount you can deposit in 2023 is the same as a regular IRA. However, if your salary is too high, you can't open a private pension account.
Withdrawal fees are waived if the Roth personal account holder is over 59 years old and has saved for more than five years for the first time.
If you are younger than 59 years old and have saved for more than 5 years, you can apply without paying a 10% penalty if: 1) your first home buyer, which cannot exceed $10,000 for a lifetime; 2) disability; (c) Death (from the beneficiary).
In recent years, annuity wealth management is a very popular financial management tool. In short, we keep our own funds in the insurance company, and then according to the contract, the pension is paid on time. In the world, people always have an income, and they don't have to worry about losing their ability to earn money when they get older, and they are not afraid of "people dying in wealth", which is why the United States calls annuities "pension insurance".
The main advantages of annuity insurance are: people can withdraw at any time when they have a life, and some pensions can be withdrawn immediately after purchase, or they can be withdrawn by husband and wife together.
Annuities will defer tax payments You can use your existing pension accounts, such as personal pension accounts, pension accounts, 401k accounts.
Whole life insurance and whole life health insurance In the past two years, life insurance in the United States has been really popular, and many people are worried about their retirement. Among them, the most popular is the COMBO plan, which combines life insurance with long-term medical insurance.
This product not only has the full benefits of life insurance, but also comes with an additional question about long-term care.
Hybrid long-term medical insurance has the following advantages: it can provide "interstate" medical coverage across state and even national borders from most insurance companies, and some companies also offer "lifetime medical care" services, as well as cross-border compensation. If you are old and do not want to stay in the United States, you want to come back to retire, sign it, sign it, and you have to take it all.
Flexible insurance ratesYou can decide how much you cover, how much you pay annually, and how many years you want based on your financial situation and needs.
Allowing for care payments to dependentsMany people leave themselves in the care of loved ones, and long-term medical insurance provided by insurance companies is generally paid in cash, so you can give the funds to your family members or use them for other expenses.
Long-term care insurance with a hybrid savings function has the added function of withdrawing your own cash value for other purposes when your pension is not being used, or you can leave the death benefit to your children.