Demographers define pre-retirees as individuals in their mid-50s. Today, a couple in their 50s can expect that at least one of them has about a 50-50 chance of living to age 90. So, they have a lot of living left to do. In some ways, it’s not surprising that they might expect to work for more than 10 years before they stop. However, the challenge of saving enough to provide for all needs and wants during a 30-year retirement is still daunting.
The Nationwide survey found that 67% of respondents expect to face more challenges in retirement than their parents or grandparents did. Today, inflation is higher than many can remember. Most were in their teens the last time rates were this high. The survey indicates that 57% of respondents believe inflation poses the biggest challenge to their retirement plans in the next 12 months. Additionally, 42% said managing day-to-day expenses is more difficult due to the rising cost of living.
Retirement planning experts will tell you that inflation is always one of the biggest concerns in creating a successful retirement income plan. Routine inflation averaging 3% over a 30-year retirement will make daily living expenses a challenge for any family. That’s why a visit with an experienced, highly-trained, CERTIFIED FINANCIAL PLANNER™ professional and Behavioral Financial Advisor in West Saint Paul, Minnesota, could be very helpful. I love to meet new people. So follow this LINK to find a time for us to have a get-acquainted visit.
One silver lining to the idea of people working longer is that, for some, it’s a choice. There are many reasons people choose to work longer. This chart illustrates the reasons given in a recent Retirement Confidence Survey.
If you would like to be more confident as you transition into retirement, maybe a visit with an experienced, highly-trained, CERTIFIED FINANCIAL PLANNER™ professional and Behavioral Financial Advisor in West Saint Paul, Minnesota might help. I love to meet new people. So, follow this LINK to find a time for us to have a get-acquainted visit.
I am a financial planner who is an advocate for my clients ALL THE TIME – a fiduciary financial planner. I provide guidance based on clients’ best interests, not commissions or sales quotas. I think it’s the best way to serve clients and I am thrilled to work this way all the time.
And yes, I’m still taking on a few great families to be part of my financial planning practice in West Saint Paul, Minnesota and, thanks to Zoom, across the country.
Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.