Of all those retired, around half believe they were forced into the decision earlier than anticipated due to various external factors. For 33%, the reason was job loss, while 25% said that it was their health. Despite this, existing workers still believe they have the financial means to retire according to plan. Unfortunately, this has led to a nation of older workers who are simply underprepared for retirement.
Even before the current health and social crisis of the coronavirus pandemic, older workers were having their plans derailed by unexpected circumstances. Since the outbreak of the virus in the United States, millions of people have filed for unemployment benefits, showing the importance of being ready for retirement at any moment. Allianz Life Vice President, Kelly LaVigne, believes that we should all have the option to pivot towards retirement at any point. With proper planning, we have plans to fall back on.
If anything changes our plans for retirement, it’s a health scare or job loss. Thanks to the ‘catch-up’ contributions in IRAs and 401k accounts, many Americans panic and use this feature in their 50s after realizing their error up to that point. Suddenly, children have grown up, the mortgage is gone, and earnings have increased. This is all well and good, but what happens if the unexpected occurs, such as being laid off or forced into taking leave? Not only can we not save, but we may also take hardship distributions or loans (which could leave older workers even more underprepared for retirement).
Financial advisors have recently been spreading the message to assess our financial position carefully and think about retirement. They suggest analyzing cash flow, how much older workers need to retire, and their options during temporary leave or unemployment – this might include benefits, severance packages, and health care coverage.
Experts say that the accumulation and decumulation phases aren’t anything to worry about in terms of the volatile markets. Instead of drastically altering investment portfolios, think about how you’ll use assets during retirement.
Although an Allianz survey suggests that 65% of people believe they will work in retirement, it’s fair to say that the motivation to work decreases significantly the closer that retirement gets. There also seems to be a gap between knowing there are insufficient funds to cover life until death and not having any more money to put into portfolios. Around 60% are worried about retirement funds, and just over 40% can’t put more money in despite being within a decade of the big day. For 33% of those near retirement, they say there’s just not enough time to catch up for their retirement goals.
In the same survey, only 3% of respondents saw an annuity as a priority right now, even though fewer than 33% have a guaranteed income source in their portfolio. Of all those asked, 40% said they have an annuity (or another guaranteed income source) in their future plans.
All Hope Lost?
Perhaps not, and some are still on track despite everything happening. If we could provide one piece of advice, it would be to manage emotions as well as money. If you analyze your finances and have considered potential market returns, you might find that retirement is still an option; in this scenario, go ahead as normal. If your finances suggest that you’re underprepared for retirement, talk to a professional who will provide tailored advice and a backup plan.
Contact Information:
Email: [email protected]
Phone: 3604642979
Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely withhelping them pursue the most comfortable financial life possible.Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.Aaron can help you and your family to create, preserve and protect your legacy.That’s making a difference.
Disclosure:
Disclosure:Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.
