How Prepared Are You? How Far Will Your Savings Take You?
I first got into the financial services industry because I knew I wanted to help people plan and prepare for retirement. I have learned along the way that it isn’t just about how much you need to accumulate – a lot of planning needs to be done to make sure it lasts.
Planning for retirement means different things to different people, but at its core the goal is to ensure and maintain a certain quality of life. Goodbye labor intensive 40 hour weeks at work, hello poolside umbrella drinks. Retirement is a time to relax and enjoy life, but in order to kick back and relax we need to have all our ducks in a row. With growing concerns over economic volatility and uncertainty over government benefits, you may be wondering if you will be ready.
When most individuals plan for retirement they have the mindset of, “I need to accumulate as much wealth as possible.” While wealth accumulation is a major component of retirement planning, it doesn’t address a growing concern – the risk of outliving your money. With advances in modern technology and medicine, people are living longer. This longer lifespan is creating an increased need to manage and maintain a certain level of income.
A lot of retirees don’t know how to deal with the “decumulation” phase of retirement – turning savings into income. People work hard to save and protect the lifestyle they love in retirement but once they get to that point in their lives they need options. According to the LIMRA Secure Retirement Institute Survey (December 2013), 80% of working Americans believe employers should provide ways to convert their savings into retirement income.
If you’re one of these people looking to turn savings into income, but are unsure how, you have options. No matter if you’re putting away a piece of that paycheck every week or reallocating one lump sum, you have options that will allow you to eventually convert that money into an income stream. No one knows exactly how much money they’re going to need in retirement, or for that matter how long they’re going to live. With so much uncertainty surrounding the future I always encourage folks to be prepared for the long haul. Life is a marathon not a sprint and preparation is key. By including a strategy to turn your retirement assets into retirement income, you are building a strong foundation for your retirement portfolio – income that lasts.