Five years or less from retirement?
Find out how Social Security, health care costs and other issues may impact your retirement plans.
IRA Information Kit
Interested in opening an Individual Retirement Account or making changes to your existing PNC Funds IRA? Our IRA kit includes the forms and information you need to get started.
PNC Asset Allocation Fund
Learn more about the PNC Asset Allocation Fund to simplify saving for retirement.
Can you afford the future?
Many people hope to steadily improve their financial prospects every year, so that one day they can afford to buy that beachfront home, take a luxury vacation or pursue a hobby full time. However, the future may cost more than you think.
To enjoy "the good life" when you're retired, you'll definitely need substantial savings. In fact, you'll actually need a lot of money simply to afford the everyday basics. Count on needing as much as 80%-90% of your current annual income each year, or nearly the full salary you earned while working.
How will you pay for retirement?
The money you may receive from Social Security each year will replace only a portion of what you'll need in retirement. Today's retirees, for example, receive only $543.51* on average each month from Social Security. In the past, Social Security and company pension plans were expected to fund an individual's retirement. But as the retirement income gap grows larger, it is unlikely that these income sources will be enough for a comfortable retirement.
Survey of retirement income sources
The graphs below illustrates that while only 50% of current retirees utilize their personal savings for retirement income, 56% of current workers anticipate personal savings to play a role during retirement. 77% of workers expect to receive retirement income from an employer-sponsored retirement savings plan, while only 37% of those already retired actually receive income from such a source. A whopping 91% of today's retirees say they derive some of their income from Social Security, as opposed to only 84% of current workers who expect to rely on this source. However, the scariest numbers are the ones indicating that 76% of current workers expect to be employed during retirement, as opposed to only 25% of retirees who are currently employed.
Traditionally, Social Security and company pension plans were primarily depended on to fund an individual's retirement. As the retirement income gap grows larger, however, the current belief is that these established retirement income sources will no longer play as prominent a role. Personal savings, as well as employment during retirement, are expected to play a much larger role funding future retirement needs.
Personal Savings Expected to Play a Larger Role in Retirement
Survey of Retirement Income Sources
Source: Employee Benefit Research Institute and Greenwald & Associates, 2016 Retirement Confidence Survey. All Rights Reserved.
If you're currently contributing to your workplace retirement plan, you've made a good start. But that's just one part of a complete savings plan. Today's investor may require a mix of income sources to ensure a financially secure retirement. One of the most important components of that mix is an IRA.
PNC Funds offers a variety of IRA solutions. Our Traditional, Roth and Rollover IRAs allow you to choose from our family of 36 mutual funds with a wide range of style categories, including domestic and international equities, taxable and tax-exempt fixed income, Asset Allocation and money market funds.
*U.S. Social Security Administration, Supplemental Security Record as of March 2017, www.ssa.gov.