What the survey points out is that pre- and post-retirees continue to need professional advice to make appropriate decisions. Prior to age 65, this means understanding the needs for disability insurance, life insurance and long-term care insurance. After 65, most disability insurance is no longer available, but the need for life insurance to replace lost income continues, as does the need to plan for health care for debilitating illnesses, illnesses which may require care in the home or in a facility.
Next week is National Retirement Planning Week 2013 (April 8 to 12), the perfect time to do some serious pre-retirement planning to evaluate if you will be ready when the time comes.
Social Security remains the primary source of income for all adults over the age of 65. In 2009, households ages 65 – 74 and households with members over 85 received 54% and 66% of their total household incomes, respectively, from Social Security. This should be a heads-up that you need to pay attention to your financial situation and start taking personal financial responsibility. Do you really want to depend on Social Security and family for your retirement?
Retirement accounts are not yielding the returns that they have in the past, and the potential of a 57% failure rate by following the 4% rule should get your attention.
The old retirement income formula may not provide the financial security it once did. Sustained low interest rates, market volatility and longevity are the most significant risks to Americans’ retirement security. But there are solutions …