The Shifting of Retirement Planning
On this weekend’s segment of Better Money Atlanta, Joel Johnson, CFP® discusses how retirement planning can differ from generation to generation. Factors like pensions, Social Security, life expectancy, and health care all play a role in the shifting of planning for your retirement.
Pensions are not as common
Less and less employers are offering pension plans and instead offer other contribution plans like 401(k)s. Most of us will not be able to survive on just Social Security and pensions like our grandparents did; We will need income from additional sources.
Changes in Social Security
Joel Johnson, CFP® talks about Social Security and how changes have affected himself and others. Back in 1983, President Ronald Reagan signed a legislation for the gradual increase of full retirement age. Full retirement age is the age you can start collecting your full Social Security benefit with no deductions. For those born in the year 1937 and before, their full retirement age is 65. People born in or after 1960 can receive full benefits at age 67. For everyone in between, their full retirement age depends on their year of birth.
Life expectancy increases
The United States has seen a gradual increase in life expectancy over the years. With this comes a longer retirement, suggesting that you will need more money. It’s important to keep up with inflation, so be sure you can give yourself a raise of 2 or 3% yearly.
Health care expenses
Health care can be a giant expense, as many retirees find themselves spending hundreds of thousands of dollars – especially if long-term care is required. It’s recommended to set aside money that will be used to contribute towards these expenses; It will help offset any unexpected costs and not dig into your savings.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
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