A Change in Retirement Culture
Various factors are redefining how Americans approach retirement. We’re discovering more and more people are redefining the term ‘retirement.’ Many are no longer riding off into the sunset, never to work again. Maybe it’s due to the pandemic, out of financial necessity, or sometimes an overabundance of leisure time, but some retirees are now beginning to return back to the workplace. Many retired executives are starting their own part-time consulting businesses, for example.
Part-time work during retirement may be worth consideration as a part of your overall financial plan. This is especially important if you plan to retire early.
How long will your money last?
Another interesting factor that is redefining retirement is that life expectancies continue to increase over
time. For some, spending one-third of their lives in retirement is a possibility. Relying on qualified retirement plans and Social Security will be increasingly difficult. These retirement programs were not designed to provide perpetual income. Adding to the dilemma of increased longevity, qualified retirement plans have gradually shifted the savings responsibility from employers to employees.
Thus, your retirement assets as well as personal savings are in your hands. They will have to work longer
and harder to help fulfill your objectives, regardless of whether you retire early or not.
Wondering how your retirement plan stacks up? Schedule a Complimentary Call today!
Go it alone or hire a professional?
An often overlooked aspect of retirement planning is money management once retirement has begun. To
ensure that you have adequate retirement assets, your money may have to continue working for you
throughout your retirement years. In addition, consider inflation along with the amount of withdrawals from your qualified plans. Other assets will have a direct impact on the longevity of your retirement assets.
It is also important to note that early retirement may incur certain tax penalties on early withdrawals from retirement plans. All options need to be investigated. Before taking action consult your professional tax, legal, and financial advisors to determine the overall impact on your long-term financial goals.
For many people, financial planning and part-time work have become essential components of a
comfortable retirement. By maximizing your personal savings you will increase your chances of reaching
your retirement goals. Remaining active and focused on your retirement objectives is particularly important if you are contemplating or are forced into early retirement.
Want to discuss these concepts, or your specific situation? Schedule a Complimentary Call today!