Retirement planning is not just for the wealthy. As retirement nears, traditional retirement plans move growth-seeking products to more conservative, fixed-income products. This may have worked fine back when retirement planning efforts had to encompass only an expected five to ten years in retirement.
Retirement planning these days, however, must encompass a much broader timeframe as people are living longer. Thanks to new prescription drugs and medical technology, it’s not unusual for someone retiring at age 65 to live to age 90 or longer. Your retirement planning efforts may need to account for your nest egg lasting potentially 25 to 30 years.
One drawback to a longer life is the greater possibility of outliving your savings – creating all the more reason for proper retirement planning, designed to last a longer lifetime.
Retirement planning today should account for the possibility of a significant loss in the years just prior to and/or just after you retire, which could have a damaging impact on the level of income you receive over the course of your life. Retirement planning efforts are typically less concerned with a loss occurring earlier in life, as there is the chance that you have more time to recover (versus a significant loss occurring later in retirement). Why? Simply because a smaller pool of assets is left to sustain you throughout your retirement years.
Our retirement planning professionals can help you design a retirement plan with sustainable income, incorporating insurance and annuity vehicles to create opportunities for long-term growth as well as guarantee income throughout your retirement.