RETIREMENT INCOME STRATEGIES
RETIREMENT INCOME
The number one question we come across in our business is...
“Will my income last as long as I do?”
Today, pension plans are becoming a thing of the past, Social Security benefits may change in the future, and more of the burden of funding retirement is falling on you. All of this results in a greater need for personal saving, investing wisely and creating a retirement income plan you have confidence in.
Retirement Income planning is essential to helping you sustain your current financial status, while generating a strategic plan to accommodate your future needs. At PFG, we will educate you on how to get the most out of your retirement income, as well as the various sources that can benefit you in retirement, such as investment income, pensions, social security, annuities, trust income, and inheritance.
What happens if one spouse passes away? Do you know how this loss will affect your current financial situation? Don’t wait until it’s too late. There are things you can do now to prepare for these moments and ensure peace of mind for a secure future.
Key Financial Changes You'll Face In Retirement
Outliving Your Income
You need a retirement income that can lost as long as you do.
Keeping Pace With Rising Costs
Healthcare, food, utility costs - good planning can help keep your stress from rising with them.
Minimizing
Taxes
If you can't beat them, find options that can help you manage them.
Reacting to Market Uncertainty
Is it up? Is it down? You'll need strategies that can lessen its impact on your future income.
OUTLIVING YOUR RETIRMENT INCOME
The great news today is that we’re living longer and have more time to spend with loved ones. But longevity also comes with the challenge of maintaining your current lifestyle in retirement without outlasting your savings.
Will you be ready for a retirement that can easily last into your 80s, 90s, and maybe even 100s?
Consider a plan for generating retirement income that can last through your retirement.
KEEPING PACE WITH RISING COSTS - PARTICULARLY HEALTHCARE
The cost of healthcare is arguably one of the biggest financial issues facing Americans today. And it’s an even bigger concern in retirement when health issues may be more likely to arise.
In fact, it's estimated that an average, healthy, 65-year-old couple will need $245,000 to pay for medical expenses for the remainder of their lives.
And then there's inflation, cutting the value of your money in half every 22 years. So if you're 45 today, you can expect to see prices double not once but twice during retirement.
Healthcare, food, utility costs–good planning can help keep your stress from rising with them.
Fidelity Benefits Consulting, Estimated Health Costs in Retirement Rise, 2015
Based on an inflation rate of 3%. Actual inflation rates may fluctuate over time.
MINIMIZING YOUR TAX BURDEN
Although taxes today are relatively low across all income brackets, there’s a chance that taxes will increase since the U.S. national debt is over $19 trillion. The national debt could also have a ripple effect on state and local taxes if government subsidies are reduced.
Taxes cut into your investment base and take a bite out of your retirement savings.
Strategies with tax-efficient growth opportunities can help keep more of your money invested and working hard for your future.
www.usdebtclock.org, accessed July 2016
OVERREACTING TO MARKET VOLATILITY
Dealing with the ups and downs of the market is a natural part of investing. It can be a challenge to stay on track with a long-term plan through periods of market volatility. You may overreact to near-term events rather than relying on the strength of the market to perform over time.
Market volatility can prompt you to search for more conservative investments to help protect your retirement income, often at the most inopportune times. And low interest rates on traditionally safer options–such as savings accounts and 6-month Treasury Bonds–can make it tough to produce enough income for retirement.
The challenge is finding opportunities for growth with strategies that don’t put your future retirement income at risk.