Changes in society and the economy may affect your personal life and the ways you interact in your everyday happenings – and retirement is no different. Each generation faces its own unique set of financial circumstances and challenges to overcome, which are ever-evolving. For instance, baby boomers grew up in the tumultuous Cold War times, members of Gen X shouldered the brunt of the recession and millennials have more student debt than any generation in history. Things like technology, health care and older Americans working longer than ever continue to reshape our current retirement landscape.
In many areas, technology may help make retirement easier – from shopping online to easily having access to your accounts, but like anything, it has its downsides. Technology has added to complexity in retirement planning, with more specialized products and more and more levels of savvy needed to properly manage your own retirement funds.
Additionally, health care has also dramatically changed – particularly the costs associated with it. The ever-increasing costs of insurance premiums and prescription drugs are likely one of the more stress-inducing trends facing retirees in the very near term. More retirees are also working longer into their golden years. For many people, work will remain a part of their lifestyle throughout retirement. All of these changes are constantly altering the way we view retirement in today’s day and age.
It’s difficult to talk about retirement planning without also talking about Social Security. The importance of maximizing your Social Security benefit really cannot be overstated. Remember that every dollar you get from your Social Security benefit is one less dollar that has to be pulled from your personal accounts. So, your decision as to when you will receive your Social Security benefit can either positively or negatively affect your benefit. It is important to understand your benefit to help determine when the best time for you to begin collecting would be.
It’s important to remember that each retiree is different and facing unique challenges, just as each generation is different. Maintaining stream of income, while also having a plan for the possibility of needing long-term care as you get into your latter years or life. Many retirees may also pride themselves on leaving a little something behind for their heirs as a legacy.
As you approach your retirement, it’s important to view it as a major life event that will affect both your financial life and your personal life. Carefully planning the lifestyle you want to live, like how much you’ll travel, how long you’ll work and adding any new hobbies will help you keep the financial aspects of your retirement in clear focus. Last but not least, it’s best to not hesitate in crafting your plan, as you want to do so when you are healthy, independent and are able to execute well-informed decision making.
If you have questions about Retirement Planning or would like a complementary consultation, please call us today at 775-675-2223.