Financial planning is an important part of retirement. Although credit counseling services can help prepare senior for their golden years, a recent survey finds that the median household with earners who have permanently left the workforce may not have the funds to live comfortably during retirement.
According to a report from the U.S. Census Bureau, seniors are living off a median household income of just $35,107, which is nearly 57 percent less than those approaching retirement.
“We found that many senior citizens are significantly underfunded and risk running out of money,” said Bankrate.com site manager Mike Sante, according to CNNMoney.
In the past, this median income may have been more than enough for American to enjoy retirement. However, certain factors, such as mounting medical bills and a rapidly rising cost of living in most states, has the majority of these household on the ropes.
The report noted that seniors in Massachusetts experience the greatest disparity when compared to households between the ages of 45 and 65 years old, earning just 45 percent of the latter. Meanwhile, North Dakota, Rhode Island, New Jersey and New Hampshire were also recognized for their considerable disparity.