Many workers follow a very defined, traditional path to retirement. You advance your career over time, and your income increases along the way. Throughout your career, you contribute to your 401(k), IRA and other retirement accounts. You try to keep your debt balances low, live within your means and accumulate enough assets to fund a long and enjoyable retirement.
However, sometimes the traditional path doesn’t lead to the desired destination. Emergencies happen. You could face unexpected costs for things like health care issues or home repairs. Market volatility could threaten your savings efforts. You could experience a career disruption that limits your ability to save.
Filing for Social Security benefits is a big milestone for many retirees. As you enter retirement, you’ll likely face a decision on when and how to file for benefits. It’s an important decision, as Social Security may play a large role in your retirement income plans.
Your decision on when and how to file is also important because it’s permanent. In most cases, your Social Security benefits cannot be altered or adjusted after you file and begin receiving benefits. Your payment may increase because of cost-of-living adjustments, but you can’t change your filing after the fact to increase your benefits.
Are you in the process of finalizing your financial plans for retirement? You may be exploring ways to generate income, minimize risk and pay for health care costs. As you likely know, a broad range of financial tools and products are available to help you achieve those goals.
An annuity is one potential tool to consider. Annuities are often used to generate income, minimize taxes, manage risk and more. There are several types of annuities, but most fall into one of two categories: immediate and deferred.
Are you planning on working past age 65? You’re not alone. Traditionally, age 65 has been considered to be retirement age. However, many workers are now saying that their target retirement age is well past 65. In fact, some plan to work to age 70 or beyond.
According to a recent study from CareerBuilder, 30 percent of workers age 60 and older say they won’t retire before age 70. An additional 20 percent plan to never retire. That means half of all workers over age 59 say they will work at least another 10 years.1
Are you facing a divorce late in life? According to new research, you’re not alone. The Pew Research Center recently found that divorce rates for people age 50 and older have doubled since 1990. Divorce rates among those over age 65 have tripled during that same period.1
There are a variety of reasons why couples are choosing to divorce as they approach retirement. Some couples may wait until their children are out of the house to separate. Longer life expectancies could play a role, too. Couples in their 50s and 60s could live another 30 to 40 years. Some couples may have diverging plans for how they want to spend those years.
If you’re like many American workers, you’re probably vulnerable to disability risk. According to the Council for Disability Awareness, nearly 70 percent of American workers in the public sector have no private insurance coverage for long-term disability. That’s in spite of the fact that 25 percent of working adults will suffer a long-term disability at some point in their lives.1
Long-term disability is caused by a broad range of medical issues like accidents, chronic pain and injuries, serious illnesses, and much more. If you suffer a disability and are unable to work, you could face steep medical bills along with the burden of funding your expenses while not receiving a paycheck.
Are you planning to work past age 65? Possibly even into your 70s? You’re not alone. According to a study from Transamerica, many baby boomers are banking on that strategy. The study found that two-thirds of baby boomers are planning to work past age 65. And 15 percent say they plan on never retiring. Of those who plan on working past age 65, two-thirds say their plans are due to financial reasons. They either haven’t saved enough, need the health coverage or need the income.1
If you’re behind on your retirement savings, you may feel that delaying retirement is an effective way to bridge the savings gap. When delay retirement, you give yourself a few more years to contribute to your retirement accounts. You also get to delay Social Security benefits, take advantage of employer health coverage, and eliminate a few years of retirement that would have to be funded with distributions from your savings.
If you’re like many Americans, retirement is one of your top financial goals. Retirement is your time to take control of your schedule. You can do what you want with your time, including travel, spend time with family, pursue a lifelong dream or simply relax and enjoy your newfound downtime.
Unfortunately, many retirees spend so much time during their career focusing on the financial aspects of retirement that they don’t put much thought into what they’ll do in retirement. They leave their job and are then faced with an empty calendar and few responsibilities. Some fill that time with costly activities, like shopping and travel. Others struggle to find purpose and meaning in life without the demands of work.