PALATINE, IL--(Marketwire - Mar 20, 2013) - According to wealth management professional Michael Kabarec, retirement is one of the most important financial areas that modern Americans need to aggressively prepare for. While many employees take advantage of company savings plans, many analysts are projecting that the amount of savings typically collected by today's citizen will not cover the financial needs of one's retirement. Michael Kabarec encourages all individuals to assess the new data presented in a recent article from The Huffington Report that reveals just how unprepared Americans are when it comes to retirement.
The article cites a new HSBC research study -- The Future of Retirement: A New Reality -- that assesses many details of retirement planning from a global perspective. It reveals that, "The average person in the United States will spend 21 years in retirement, but will deplete their savings after just 14 years, leaving a shortfall of seven years." The article addresses the fact that in today's environment, many retired individuals are living longer while simultaneously living through tough economic times. This pair of trends has made it much more difficult for retirees to afford basic necessities like housing and healthcare.
Michael Kabarec notes that as life expectancies and healthcare options improve, many Americans will begin working longer careers; however, he notes that this added effort will not prove enough for retirement planning. According to Kabarec, Americans need to reassess how they view savings and financial priorities. Following a similar sentiment, Andrew Ireland of HSBC comments on the new report in the Huffington Post article, "The most surprising finding was that in spite of the inadequate state of retirement savings globally, when asked to choose, almost half of pre-retirees (43 percent) are willing to prioritize saving for going on holiday over saving for retirement."
For Michael Kabarec, there is one simple solution -- to start saving now and to start saving more. "In talking with people about retirement as President of KFA, Ltd., my biggest fear is that clients will run out of money -- it is also the biggest fear our clients have. It is our job to convince them that there is no excuse in saving for retirement. Taking additional risk, such as by making unnecessary purchases, is not the answer. I want people to save aggressively, use their company's 401K plans, Roth IRA's and whatever else that can be virtually untouchable for near-term spending. However, people can still enjoy their lives despite what the HSBC report may suggest -- saving does not necessarily mean a dramatic change in lifestyle," Michael Kabarec concludes.
Michael Kabarec is a trusted investment management professional who carries more than 30 years of experience in this challenging career field. Throughout his professional history, Michael Kabarec has gained strong insight into what skills and knowledge is necessary to perform tax management, investment management, wealth building services, small business development and retirement plans. Today, Michael Kabarec relies on his proficiencies in these areas to serve as President at Kabarec Financial Advisors, Ltd. -- a Chicago-based investment management, financial and wealth advisory firm that has existed since 1982.