One of the most pressing concerns we’re able to help address in the course of our meeting with clients is the pressing and real fear of outliving one’s retirement savings. Many felt they were completely “on track” prior to the disaster that was in 2008, and when they’ve come to us for an initial consultation, one of the most common questions we address is, “What impact is all this going to have on us in retirement?”
It’s a very valid question.
The National Retirement Risk Index (NRRI) measures the percentage of working-age households that are at risk of being unable to maintain their pre-retirement standard of living in retirement. It addresses one of the most compelling challenges facing the nation today: ensuring retirement security for an aging population. Significant advances in medicine and technology have created an “age wave” in the United States in which people are living far longer than ever before. That trend is expected to continue, and many scientists now point to a time in the not-so-distant future in which people might be living an average of 95, 100 or even 110 years. While longevity continues to increase, the prevalence of traditional retirement income sources such as defined benefit and pension plans continues to decrease. The net result? A much higher responsibility on you – the individual – to have a sound plan in place to ensure that your accumulated retirement savings lasts as long as you do.
Check out a few of the key findings from the NRRI:*
• The retirement landscape is shifting dramatically, making the outlook for retiring Baby Boomers and Generation Xers far less optimistic than for current retirees.
• 51 percent of households are “at risk” of not having enough to maintain their current living standards in retirement
• Explicitly including health care in the Index drives up the share of households “at risk” to 61 percent.
• Incorporating long-term care costs further increases the Index to 65 percent.
• Saving more and working longer may be required to improve the outlook.
(To view the full report, along with Issues in Brief and other useful resources, simply CLICK HERE.)
We don’t feel the ups and downs of the market or today’s volatile economy should have ANY bearing or impact on your lifestyle and income in retirement. That’s why, along with a number of solutions built for accumulation of retirement assets, we also provide guaranteed retirement income solutions. These solutions not only provide income you cannot outlive, but many of the options available give you the opportunity for annual increases in income to help offset the effects of inflation. They also offer liquidity – or penalty-free access – to portions of your money should you need it for emergencies. If you haven’t secured your retirement income plan or you haven’t had it reviewed to ensure it will withstand today’s uncertain environment, you owe it to yourself to schedule a consultation with a qualified retirement income specialist. You’ve worked far too hard getting to retirement – don’t let financial worries make you settle for less than you deserve.
Respond and learn how annuities can be used in various planning strategies for retirement. Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC.
* National Retirement Risk Index. Center for Retirement Research at Boston College. October 2010.