The last two decades mark a distinct time of change. Over the years, we’ve seen how medical advancements have altered the healthcare industry and how shifts in technology impacted our ability to be successful in the workplace. Among these evolving factors, it’s no surprise that the retirement landscape has also changed from what we knew it to be 20 years ago.
These changes reshaped how we’ve approached retirement planning over time. And this year is already shaking out key trends we want Americans to know about.
Retirement has some strong advocates that are placing high priority on passing retirement legislation in 2019. Actions from the White House also signal that the current administration is serious about addressing the retirement crisis, detailed in an Executive Order on Strengthening Retirement Security in America.
A number of pieces of legislation were introduced last year that help address employees without access to plans and who do not have enough saved to last throughout retirement.
Here are a few pieces of legislation we are keeping an eye on in 2019: Retirement Enhancement and Savings Act, Retirement Plan Modernization Act, Retirement Security and Savings Act, and Automatic Retirement Plan Act. Learn more about these proposals.
In addition to a company pension and a 401(k), Social Security is another program set in place to help retirees gain a steady stream of income during their golden years. The Social Security Trust is set to become exhausted by the year 2037 and there is lot of uncertainty regarding reform of the program. However, this program still impacts people who are looking to retire soon. In fact, roughly 10,000 baby boomers turn 65 every day, an age often associated with when Social Security beneficiaries can claim their full retirement benefit.
Each year that you delay taking out your Social Security from your full retirement age, your benefit will increase by 8 percent each year until age 70. However, it’s important to know that Social Security alone will not be enough to last throughout retirement. To increase financial security, consider other vehicles that offer lifetime income.
With advancements in technology and medicine, people are living longer and healthier lives but that also comes with a worry of whether your savings will last throughout retirement. The quest for stable income you can’t outlive is a goal shared by many Americans, with nearly 80 percent reporting it as their number one retirement need.
Pensions and 401(k)s are a great way to start saving for retirement. During this demand for lifetime income it’s crucial to understand how much risk you can take and sustain. Market volatility exists and there is always potential for a loss. The important thing to remember here is diversification and adding products to your retirement portfolio that meet your needs.
For those looking to add versatility to your retirement portfolio and a way to protect your hard-earned dollars against market volatility, learn more about products that offer lifetime income, such as a fixed indexed annuity.
The New Year is an important time to evaluate your retirement strategy to make sure you are as prepared as possible for your golden years. Understanding these changes and trends can help you make better decisions about your retirement strategy and planning. If you want more tools to prepare for retirement, check out our resources page.
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