Let's talk about retirement planning

According to a study from 2021*, running out of money in retirement scares most people more than dying. The concern is real, as longer lifespans can mean a retirement that lasts 30 years or more. Generating retirement income that lasts requires careful planning. But it starts with having a sense of when and where you want to retire, and what kind of lifestyle you envision. A financial professional can help you work through these and other questions.

*Reclaiming the Future white paper referenced in article ‘What Happens if I Really Do Run Out of Money in Retirement?’ Retrieved and updated on July 19, 2022, from newretirement.com and allianzlife.com

You can start to receive benefits at age 62, but your monthly benefit rises 8% for each year you wait to start – until age 70, when increases stop. There are lots of factors to consider though, including your need for income, your other sources of income and even your health. Your retirement planner can help you run the numbers and compare scenarios to decide whether earlier or later is right for you.

Decisions regarding Social Security are highly personal and depend on several factors such as your health and family longevity, whether you plan to work in retirement, whether you have other income sources as well as your anticipated future financial needs and obligations.

Health care is one of the biggest expenses most people will face in retirement. A 65-year-old retired couple today will spend an average of $315,000 on health care, according to a new estimate by Fidelity Investments*. A financial professional can help you budget for health care needs as you create a plan for retirement income and show you why life expectancies make planning even more important for women.

*Viewpoints, F. (2023, June 21). How to plan for Rising Health Care Costs. Retrieved August 18,2023, from https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs 

As you transition to retirement, your planner can help you set up a systematic withdrawal plan to receive monthly income from your investments. How much you take out depends on how much you need to supplement Social Security and other sources like pension income. In some of your accounts, you may also have to withdraw a certain amount each year because of Required Minimum Distribution rules.

If you’re like many people, you want to have enough money to live comfortably through retirement, but also leave something behind for the people you love and the causes you care about. Your retirement planner can help you develop a comprehensive financial plan, consult with in-house specialists in estate and legacy planning, and provide you a list of attorneys in your area for essential documents you may need, including a will, durable Power of Attorney, living will and living trust.

While it makes sense to reduce your stock market exposure as you move into retirement, there are good reasons to continue investing a portion of your money in a broadly diversified portfolio. Even though you may be able to live comfortably on the nest egg you’ve built, you might live another 20 or 30 years – or more – in retirement. That’s enough time to potentially grow your savings substantially, both for you and perhaps also for your children and grandchildren to enjoy.

Our investment advice is independent and objective, but more than that, it’s personal. It starts by assessing your financial goals. Then, using our proprietary analysis, your financial advisor will create a personalized portfolio that is uniquely aligned with those goals and with your risk tolerance. This isn’t a one-time event though, it’s the beginning of an ongoing relationship that will continue as you go through each stage of life and your situation and circumstances change.

Someone from our team will give you a call in the next few days to schedule an appointment. When you meet with your financial planner you’ll have a chance to talk about your financial goals - and learn more about how we can help you achieve them.