Because Hope is Not a Strategy!
As roughly 10,000 Baby Boomers continue to turn 65 each and every day in the United States, more people are becoming concerned about the income and financial aspects of retirement. Unfortunately, though, studies have shown that few are actually doing anything about it.
This lack of planning is not necessarily because people don’t believe they can do it. But rather because few try to seriously envision their lives in retirement, so in turn, they do not take the steps that are necessary for accomplishing retirement income and other related financial goals.
Are You Anxious About Your Retirement Income Running Out?
The Alliance for Lifetime Income’s Protected Income Index Study is an ongoing research program that tracks the level of both protected and unprotected households in the United States.
Among other things, this study found that 80% of non-retired Americans are at least somewhat concerned that their savings might not provide them with enough income to live in retirement – at least not for as long as they may need it to.
In fact, only about 30% of those who are not yet retired in the U.S. have a source of “protected” lifetime income. This could include a guaranteed income source like an employer-sponsored pension, Social Security, and/or an annuity.
Up until just a couple of decades ago, many retirees could depend on retirement income from all of these sources. And, because life expectancy was shorter back then, these sources of income were oftentimes more than enough to sustain a retiree for the remainder of their lifetime.
Today, however, many aspects of the retirement income landscape have changed. One of the biggest of these is the fact that the employer-sponsored defined benefit pension plan has all but disappeared.
In many instances, this has been “replaced” with the defined contribution plan – the most popular of these plans being the 401(k). While defined contribution plans can provide tax deferral of contributions and tax-deferred growth of your savings, these plans also put the responsibility of having enough future income in the hands of the employee, not the employer.
Given increased market volatility, low savings rates, the potential for increased healthcare expenses, and longer life expectancy these days, this can be concerning for many. With all of that in mind, it makes sense that those who have one or more protected income sources are more confident about their overall finances in retirement.
A Successful Retirement is Not Just About the Money
Living a successful retirement goes far beyond just the financial issues. This time in your life should also encompass spending time with loved ones, accomplishing non-work-related goals (like volunteering with a favorite charity), and enjoying your days without having to set an alarm clock.
But getting to this point will require that you have one or more reliable, ongoing streams of income that you can count on. With only about one in five Americans seriously envisioning life in retirement, though, and only two in ten having a specific financial plan that they can follow, the future of retirement for many people in the United States remains to be seen.
How can you place yourself firmly into the “people with a plan” category?
The first step is to talk with a retirement income specialist who can take a look at your goals and objectives, and then design a plan that is custom fit to your specific goals and needs. If you’d like to set up a no-obligation strategy session with an Annuity Gator income expert, feel free to reach out to us directly at (888) 440-2468, or contact us via our secure online. We look forward to hearing from you.