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5 reasons your retirement will turn out fine

Here are some common-sense notions to keep in mind when it seems like the sky is falling on your golden years.

By MSN Money Partner Feb 22, 2011 1:43PM

This post comes from David Ning at partner site U.S. News & World Report.


 U.S. News & World Report on MSN MoneyI am tired of reading all the doom and gloom reports explaining how our retirement is in danger. Yes, there may be high inflation in the future and average 401k balances should be much higher. But let's not scare ourselves just yet.


Here are five reasons your retirement will turn out just fine.


1. Your Social Security checks will keep coming. Some younger folks are already starting to write off Social Security as a lost cause. But you can be sure that the government will never allow this retirement aid to go totally bust. While lawmakers may increase the age you can start collecting checks or introduce a more progressive benefit system where high earners get less, Social Security will still be part of almost everybody's retirement. Post continues after video.

2. Many "necessities" are actually luxuries. Almost every household can cut back on something. Products like cell phones, cable TV, a car, or even a big house are all luxuries. If money ever becomes tight, cutting down on some of these expenses could drastically improve your ability to finance a comfortable retirement. 

3. You are adaptable. The majority of retirees will learn to adjust to the amount of money they have. Maybe they will clip more coupons, forgo drinks when they eat out, or find other creative ways to stretch their fixed incomes. But you will find a way to make do.


4. There is more to happiness than just spending money. You may feel bad that you have to downsize at the beginning, but soon enough you will adjust to having fewer rooms to clean and maintain and lower property taxes. Consider trying many of the free and low-cost activities in your area that you didn't have time for while working.


5. You still have the ability to save. Your ability to save is the biggest predictor of how comfortable you will be in retirement. Start aggressively saving, and your chances of a comfortable retirement will be much higher. Retirees can also help their saving to last longer by taking on part-time, seasonal, or consulting work.


Your retirement prospects aren't as bad as you think. If you keep saving, there's no reason you shouldn't be able to enjoy a comfortable retirement.


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