Planning for the Long Haul: Is Your Plan for Retirement Bullet Proof?
The good news is we are living longer, but the bad news is that having irregular employment, higher health costs and the premature depletion of retirement assets is becoming a reality for many Americans. Despite plans for retiring later (compared to previous generations) at age 69 or into the 70’s, unplanned events are contributing to earlier retirement, despite the best retirement planning preparation.
According to a 2018 survey by The Employee Benefit Research Institute (ERBI), 40% of participants in the study plan to retire after age 70 citing personal financial concerns. However, previous research studies by the same group revealed that many workers are forced to retire before age 60. Consider why the outlook for an unexpected early retirement is happening to many people:
Layoffs and Terminations
The ERBI survey revealed that 26% of workers terminate out of their jobs before turning age 60. Older workers are often paid higher wages than their younger counterparts and unfortunately are often the first to be terminated. Even with an early retirement buyout, many have a hard time finding work with the same pay rate and benefits. The change in income is creating negative consequences for many as suspended savings contributions and premature liquidation is occurring when retirement assets become necessary for living.
Despite longevity increasing worldwide, many workers are forced to retire early due to health reasons. What we do to our health in our younger years affects us later; smoking, alcohol consumption, lack of a healthy diet and exercise and sleep deprivation are the most significant contributors affecting our health later in life with genetics being secondary.
Keeping yourself healthy and employed is imperative to your retirement plan’s success. By preparing yourself financially and taking care of yourself, your plans for retirement have a better chance of being bullet proof-regardless of what life hands you.
*Advisory services offered through Trajan Wealth, L.L.C., an SEC-registered investment adviser.
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