Saving for Retirement - A Challenge for Paycheck to Paycheck Employees

Allow me, if you will, to offer the following definitionclient- retiree to retire financially independent (with
of retirement. Retirement is the state of havingthe exception of the few high income clients). What
separated from one's paycheck-to-paycheck job. Themost financial planners don't tell you is they target a
"paycheck-to-paycheck" description is important. The20-35% decrease of income to you in retirement.
majority of people who retire to incomes lower thanThe decrease may be as high as 50%! That's not a
their pre-retirement levels are paycheck-to-paycheckknock on financial planning or financial planners. Most
employees. Chances are, since you're reading thisof them are doing the best they can with what they
article, you're one of the paycheck-to-paycheckhave to work with. There generally is simply too
people.much month at the end of each paycheck for most
Let's say this is you: You've got a decent job, maybepeople.
a good one. Most of your paycheck is being eaten upHerein is the age-old problem: Most people in the
by life's necessities, but you manage to put away asUnited States of America, I repeat, do not earn
much as you can into your 401(k) retirement plan.enough money to live comfortably during their
Retirement is looming in the not-too-distant future,pre-retirement years and retire comfortably as well.
and the prospect for accumulating enough savings orThat means any financial planning you do is being
investments that will equal your present income bydone to target a decrease in your living standards by
retirement age seems very bleak indeed. Still, you20 to 50 % in retirement!
get serious about saving for retirement. You mightRemember, you do not have to live on less in
even engage the services of a Certified Financialretirement. No matter where you are right now
Planner. Part of your plan is based on maximizingfinancially, you can build and enjoy a retirement
Social Security benefits. Now what?lifestyle you desire. Peace.
Financial planners rarely, if ever, plan for you, the