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The average balance in all 50 million 401(k) accounts is just over $60,000, according to the Employee Benefit Research Institute. Even people within 10 years of retirement have saved an average of only $78,000, and more than a third of them have less than $25,000. More than half of U.S. workers have no retirement plan at all. With Social Security averaging $14,780 a year for individuals and $22,000 for couples, many Americans will exhaust their savings in just a few years. Since millions of boomers are likely to live into their 70s and 80s, the country is headed toward a major crisis. "It looks like most middle-class Americans will become poor or near-poor retirees," said Teresa Ghilarducci, a retirement specialist at the New School in New York.
And for those that have amass tidy sum. Once you withdraw plus S.S over certain income levels S.S will be tax as much as 85%. One could use a roth ira to off set taxes. However, congress could change tax laws on roths in the future.
And there are minimum required distributions starting at age 70.
Uncle Sam has the ability to tax the hell out of you.
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