Everyone knows you should start planning for retirement as soon as you enter the workforce. Whether that’s through your employer’s 401(k), a personal IRA or some sort of other retirement income planning, you spend a majority of your working life accumulating money for the day you finally get to retire. However, there are several challenges that present themselves when planning for your retired life.
At Income for Life, our financial planner can help you find ideal retirement income planning solutions so when you finally do retire in Atlanta, Georgia, you can stay retired. Contact us today to speak to our Top Rated National® Retirement Income Planners.
In this blog post, we present five challenges you should consider when tackling the complex task of retirement income planning.
Challenge 1: Determining the age of retirement.
Statistics from a 2015 Society of Actuaries study show men have a 76 percent chance of reaching 90 years old while women have an 82 percent chance. Ultimately, this means you might spend as many years in retirement as you spent working, which can be especially hard to plan for.
You want to be able to make and save enough money to meet your current expenses as well as any future expenses. This can be a hard task to accomplish without any retirement strategies set beforehand.
Challenge 2: Predicting the market.
The market generally has its ups and downs, but there are events, known as “Black Swan” events, that can really shake things up (for the worse). For example, natural disasters, such as earthquakes and hurricanes or terrorism events like 9/11, can take a significant, unexpected toll on the financial markets.
These are events that are totally out of our control, and since a majority of our trading is conducted electronically now, the market is more volatile than it has ever been.
Challenge 3: Inflation.
Inflation is something that is inevitable yet complicated to plan for in regards to retirement during your working years. The average inflation rate is anywhere between one percent and 3 percent annually. To put that into numbers that make a little more sense, at that rate, $1,000 in today’s market will only be worth about $552 in 30 years.
When you are searching for retirement income planning strategies, you need to factor in that inflation rate to ensure you can retire at a comfortable means.
Challenge 4: Changes in taxation.
Taxes ebb and flow depending on multiple factors — your tax bracket being one. If you are in a high tax bracket, you need to know how your assets are being invested and how exactly you’re being taxed for those investments.
Challenge 5: Leaving a legacy.
When you pass away, chances are you’ll want to leave enough behind for your loved ones. That means you need to make enough for your current situation, future retirement situation and still have enough left over for your loved ones.
This all is possible with efficient saving strategies you can get by contacting our Atlanta retirement income planners.
Choose Income for Life As Your Next Retirement Planners
Income for Life has expert retirement planners who help retirees and pre-retirees determine their ideal retirement income planning strategies and solutions. We can help you find a strategy that will address these common challenges so you don’t have to worry about them when you do finally retire. For more information, give us a call within business hours at (888) 228-8814 or fill out our online form. You can also check out testimonials from our clients here!