Traditionally, the main 2 concerns pre-retirees have are…
Can I Retire?
Will I Run Out of Money?
However, according to a recent survey by HSBC, “Retirement Reinvented”, It’s Inflation.
Yes, inflation tops retirement concerns here in the US.
Planning for retirement has always been a crucial financial goal for individuals, and it remains important across generations. It ranks as the second most important priority for Boomers and Gen X, following immediate financial security.
Even Millennials, for whom retirement is still some time away, consider it an important financial objective, after achieving financial security, providing for the family, and generating additional income.
It’s important to note that the expected savings required for retirement may not adequately account for the future cost of living, creating a growing gap that needs attention.
There are several strategies to deal with inflation along with the other concerns on the list.
-If you are renting, then try to purchase property to build the equity in the home.
-Investing in equities that thrive during times of inflation, particularly in companies that can increase prices more naturally, such as companies that use commodities.
-Explore avenues for generating a steady income that can withstand the impact of inflation, like an annuity or cash value life insurance.
-Rental Income from a small property that you can handle.
-Create a small business so that you can continue that when you decide to retire.
-Keep Uncle Sam out of your accounts and have the 3 buckets of money with Tax-Deferred, Taxable and the most important Tax Free bucket with Roth accounts and Cash Value Life Insurance.
-Save Early, Save Often. Make sure time is on your side and working for you rather than trying to catch up late in the game.
Some of the reasons quoted for working beyond retirement included general financial security, as well as having access to health insurance coverage and paying off mortgages. And with all that being said, don’t forget to be happy.
As you plan for your retirement, make sure you speak to your family members on what’s important before someone has to make the tough decisions for you.
If you would like additional help with a comprehensive financial plan or a review of your investment accounts, you can reach us at info@commonfinancialsense.com
