The New Realities of Retirement
10 May 2016
Approximately 4 million baby boomers will retire this year alone! Talk about a drain on pension and Social Security benefits…You don’t have to search very far to find information on the under-funding issues with both of these programs. There are many new realities to retirement. Here are just 3:
*You will live longer than you imagine– One out of every four people age 65 will live past 90. Don’t think of retirement in years, plan on decades.
*Social Security will not go broke– I know, I know. I brought Social Security up earlier, but the system will improve. I am confident it will be there for all of us, it just won’t be in the same format we see today. Changes will occur, like raising early/full retirement ages, raising the salary income cap for contributions, and many others.
*You will need more than you think in retirement– Increasing out of pocket health expenses and the looming threat of long term care make it more challenging as you age. No cost of living adjustments to most pensions and social security limiting raises as well-if your money isn’t going up, it’s probably going down.
Planning as early as possible will no doubt help you prepare for these and many other retirement challenges!