Page 46 - Money - November 2018

THETHE
ULTIMATEULTIMATE
RETIREMENTRETIREMENT
GUIDEGUIDE
20182018
SOLOTHE FUTURE OF could also consider adding Treasury
SENIORSRETIREMENT
Inflation-Protected Securities, also known as
TIPS, to your portfolio. These special
Treasury bonds offer yields that are adjusted
for inflation. The bond portion of American
Century’s target-date funds for people of
retirement age consists of about one-quarter
TIPS, Weiss says.

HOW TO REACH 7)'96) +9%6%28))(
THE FINISH LINE: -2'31)
Recommended
savings guidelines ATRICIA LYONS HARRINGTON,
by age, assuming a 4 age 105, of Essex, Mass., has
retirement at 67 multiple sources of guaranteed
income to support her longevity.
While Social Security is one of them, it
wasn’t originally part of the plan. Har-
AGE30 rington wasn’t eligible for Social Security
1X YOUR SALARY
after her long and rich career as a music
teacher and supervisor in the Boston public
schools. Certain state and local government
AGE35
2X YOUR SALARY employees don’t pay Social Security payroll
taxes and thus are ineligible. But Har-
rington, who married for the first time at
AGE40 age 67, now receives benefits on her late
3X YOUR SALARY
husband’s record.
Harrington started teaching in 1937. She
says that back then, the school system made
women quit when they married. “I loved the
AGE45
4X YOUR SALARY teaching, I loved the music, I loved the kids,”
she says. “Why should I give that up to
housekeep for a man?” While the rules
eventually changed, Harrington saw no need
to tie the knot until she reconnected with a
AGE55 college beau around the time she retired. who wants to stay in office is going to
7X YOUR SALARY
Many of today’s oldest old, including propose cutting their only source of
Harrington, Riha, and Rogers, have pensions guaranteed income.
from their former employers. Tomorrow’s But as a safety net, Social Security is
centenarians won’t be so fortunate, unless limited—it replaces only about 40% of the
they worked for the government. Nearly 30% average worker’s paycheck. Tomorrow, it
AGE 60
8XYOUR SALARY of private-sector workers were covered will very likely be less. While you may think
solely by pensions in 1979, compared with retirees collect the money that they paid
just 2% in 2014, according to the Employee into the system while working, in reality
Benefit Research Institute. current workers support current retirees.
Social Security is the only pension that Back in 1970, there were 3.7 workers for
most future retirees will have. The good each Social Security beneficiary, but by
AGE 67 news is it’s not going anywhere. Unless older 2030, there will be just 2.0 workers. This
10X YOUR SALARY
SOURCE: Fidelity adults stop voting en masse, no politician means that Congress will have to either

MONE Y. C O M NO VEMBER 2 018