Retirement has never been easy, yet has remained attainable for Americans willing and able to carry out the savings, responsibility, and consistency required to execute a sound investment strategy over years (and decades). This results in, ideally, comfortable twilight years with a minimal drop-off in lifestyle, and the continued ability to carefully manage the dollar value of investment with income distribution for the remainder of life.
While millions of Americans still retire yearly, it has become apparent that the current economic and fiscal climate introduces new challenges for those seeking a picturesque post-work life, and that these challenges are cross-generational. High inflation, volatile markets, and rising interest rates (not to mention the associated scarcity and cost of credit) have rendered the current decade’s approach to retirement undoubtedly more complicated, and less “autopilot” than many would like.
The Current State of Retirement
In its most recent Retirement Survey & Insights Report, Goldman Sachs Asset Management uncovered a number of illuminating (and in some cases concerning) insights regarding the capability of typical Americans, be it Generation X, Baby Boomers, or Millennials, to save for and achieve a comfortable retirement. Immediately notable is the discovery that 51% of current retirees stated they live on below half of their pre-retirement income; this pairs snugly with expert analysis concluding that in many cases, up to 70% of pre-retirement income is required to achieve comfortable retirement. If today’s retirees have to save half their income in order to make post-work life viable, what does that say for the chances of working individuals and the challenges they face tomorrow?
The report provided further insights. Outside of current retirees, a substantial portion of Generation X reported being “stressed” when it comes to managing retirement, with 51% responding they are behind schedule with their savings. While certainly achievable, the schedule and margin for error in saving for retirement through purely traditional means has become so narrow, that mishaps, life events such as health costs, or any unexpected significant expense can often stand to delay, or even derail, retirement goals.
It’s known that inflation reached as high as 6% and beyond in the wake of COVID-19, but some independent research groups estimate, using traditional or deprecated CPI calculations from the 80s and 90s rather than the hedonically adjusted or otherwise tweaked current measurement, that inflation post-COVID-19 may have even breached 10%, and approached 15%. If the performance of your investments can’t pass muster in comparison, retirement becomes more difficult.
How Crypto Can Help You Retire (Retirement Planning)
Thankfully new problems bring new solutions, and the response on the part of technologists and innovators to bank failures and money-supply expansion (both in 2008 and now) has been the creation of decentralized, immutable, and relevantly, high-performing cryptographically secure currencies and digital assets, known as cryptocurrency. Bitcoin’s staggering lifetime returns are no secret at this point, and investors want to know – how can crypto help aspiring retirees ? Both the retired and the still-saving face modern challenges that impede their ability to generate income, be it inflationary pressures, healthcare costs, or even potential reductions to Social Security (which, according to the earlier-cited alternative statistics, in real terms occur each and every year).
While investors can’t turn back time and invest in Bitcoin from day one, they can leverage this powerful asset class in their favor by combining its high-performance and modern advantages with tried-and-true retirement tools such as self-directed Individual Retirement Accounts (IRAs). Currently, we may sit at the tail-end of the “winter” phase of the crypto market cycle – Bitcoin stands just below 60% off its record highs, while altcoins average between 70% and 90% down.
What was dismissed by some as untenable volatility during 2022 has, once again, reliably transformed into opportunity for all investors, seeking retirement or otherwise, to transcend high inflation and contemporary fiscal challenges. A recent BitcoinIRA survey found that investors remain bullish on cryptocurrencies; 51% of survey respondents are considering investing in crypto as part of their retirement portfolio, while 27% have already invested.
While speculating on new levels an investment may reach is no-doubt risky, instead dollar-cost averaging into proven crypto assets that stand to achieve significant appreciation merely by returning to prior levels in an upcoming bull cycle is a different concept entirely. Extraordinary challenges call for extraordinary strategy, and providers like BitcoinIRA can help those striving for retirement invest in cutting-edge, historically performant digital assets using tried-and-true, safe, and proven retirement vehicles.