Retirement today is far different than retirement in the past – and there are several reasons for this.
FIRST, PEOPLE ARE LIVING MUCH LONGER TODAY. THIS MEANS LIVING FOR 20 OR MORE YEARS AFTER YOU’VE SAID GOODBYE TO YOUR EMPLOYER IS NOT ONLY FEASIBLE BUT HIGHLY LIKELY.
Having more time to enjoy travel, volunteering, and all of the other benefits of retirement sounds excellent, doesn’t it?
Retirement today is far different than retirement in the past – and there are several reasons for this.
FIRST, PEOPLE ARE LIVING MUCH LONGER TODAY. THIS MEANS LIVING FOR 20 OR MORE YEARS AFTER YOU’VE SAID GOODBYE TO YOUR EMPLOYER IS NOT ONLY FEASIBLE BUT HIGHLY LIKELY.
Having more time to enjoy travel, volunteering, and all of the other benefits of retirement sounds excellent, doesn’t it?
But longer life also means your savings must last longer, so you don’t run out of income before “running out of time.”
In the past, many retirees could also count on a regular income from an employer-sponsored pension. Today, however, pensions are very rarely offered by employers. Most retirees now must rely on what has been saved in defined contribution plans like 401(k)s, in hopes there will be enough to generate livable cash flow in retirement.
There are other concerns that must also be planned for in retirement, like the need to keep the principal intact so you don’t lose your hard earned assets in a volatile or downward moving market.
But longer life also means your savings must last longer, so you don’t run out of income before “running out of time.”
In the past, many retirees could also count on a regular income from an employer-sponsored pension. Today, however, pensions are very rarely offered by employers. Most retirees now must rely on what has been saved in defined contribution plans like 401(k)s, in hopes there will be enough to generate livable cash flow in retirement.
There are other concerns that must also be planned for in retirement, like the need to keep the principal intact so you don’t lose your hard-earned assets in a volatile or downward moving market.
Unlike younger individuals, once most people have retired, it is unlikely you will add a large amount of savings to your investments. Nor do you have time on your side to wait for your portfolio to recoup losses. This, in turn, can have a substantial impact on how much income you’ll have available going forward.
The good news is by working with professionals who will take a close look at your overall financial picture and consider guaranteed products as part of your potential retirement solution, you can plan for keeping principal safe, while also ensuring a steady income that you can count on, regardless of how long you need it.
If you’re already retired, it’s not too late for you to initiate an income stream you can count on in any market environment or economy.
Unlike younger individuals, once most people have retired, it is unlikely you will add a large amount of savings to your investments. Nor do you have time on your side to wait for your portfolio to recoup losses. This, in turn, can have a substantial impact on how much income you’ll have available going forward.
The good news is by working with professionals who will take a close look at your overall financial picture and consider guaranteed products as part of your potential retirement solution, you can plan for keeping principal safe, while also ensuring a steady income that you can count on, regardless of how long you need it.
If you’re already retired, it’s not too late for you to initiate an income stream you can count on in any market environment or economy.
