How Real Estate Investment Can Boost Retirement When Pensions, 401(k)s And Social Security Fall Short

Bruce W. McNeilage, CEO Kinloch Partners.

There was a time in the United States where the norm went something like this: Graduate from high school or college, and then work 30 to 40 years with the same company and retire with a pension and a gold watch.

But that’s not the way it works today.

Those pensions? For most Americans, they are history. In 1980, 60{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} of American workers had access to a defined benefit (company-funded) retirement plan. Today, the percentage of workers in the private sector with a defined benefit retirement plan has plummeted to 4{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c}, according to CNNMoney.

Defined contribution (self-funded) retirement plans, such as 401(k)s, have helped pick up some of the slack, but these plans are often underutilized. According to a 2015 report from the Government Accountability Office (GAO), the median retirement savings for Americans ages 55 to 64 was $104,000. If invested in an inflation-protected annuity, this would equate to a $310 monthly payment.

How about Social Security? The average Social Security benefit was $1,503 per month in December 2020. The maximum possible Social Security benefit for someone who retired at the full retirement age of 66 or 67 is $3,148 in 2020. This

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