Tyler Barnett PR

SAN DIEGO, September 28, 2021 (Newswire.com) - According to the 2021 Global Retirement Index (GRI), a recent survey conducted by Natixis Investment Managers, over 40% of Americans believe "it's going to take a miracle" to retire securely. Moreover, 59% of Americans are accepting of the fact they may have to work longer, while 36% feel they won't ever have the means to retire. Steve Sexton, financial consultant and CEO of Sexton Advisory Group in San Diego, outlines critical strategies and benchmarks for staying on track for retirement.

1. Set specific goals. When it comes to retiring securely, it is crucial to understand how much you have saved and what your ideal retirement age is to determine realistic retirement goals. "You will need to compare your current savings to your current gross income to start setting attainable goals based on your income," says Sexton. "If you haven't already established specific retirement goals, it's never too late to start."
2. Consider the 85% rule of life expectancy. "While retirement savings benchmarks are dependent on a number of factors including age, income, lifestyle, healthcare expenses and more, I generally advise my clients to add in a buffer to account for life's unexpected ups and downs, many of which could occur during retirement," says Sexton. The 85% rule of life expectancy suggests individuals looking to retire save 85% of their annual income multiplied by 20 years, the average number of years one will spend in retirement. The final amount is a ballpark suggestion of how much one should save to retire securely.
3. Consider the 3 A's: Sexton suggests looking at the 3 A's when figuring out how much to save: Amount, Accounts, and Assets. When determining the amount you need to save, Sexton recommends the 50/30/20 rule, which allocates 50% of your income for bills, 30% on discretionary spending, and 20% for savings. When looking at your accounts, factor in all of your sources of retirement income, including social security, employer pensions, investments, and retirement accounts such as 401ks. When it comes to assets, the higher percentage of retirement savings that are in stocks, the higher the portfolio rate of return will be. "Long-term retirement planning is considered a long-term accumulation event where you consistently buy shares in the market, investments, or real estate with the goal of accumulating enough to enjoy a secure retirement," says Sexton.

For more information on Sexton Advisory Group, visit https://www.sextonadvisorygroup.com/.

Source: Sexton Advisory Group