Princeton Executive Center
4301 Route 1 South; Suite 220
Monmouth Junction, NJ 08852

LinkedIn YouTube
United Wealth Group LLC Home

United Wealth Group LLC

(732) 355-1050

 
Home NavigationMENU
  • About 
    • Mission Statement
    • Team
    • Products & Services
    • Useful Links
    • About Guardian
    • Careers
    • United Wealth Group LLC Website Terms of Use
  • Strategies 
    • Living Confidently
    • Financial & Emotional Confidence Quiz
    • The Reality of Life
    • The Living Balance Sheet®
  • Resource Center 
    • Retirement
    • Estate
    • Investment
    • Insurance
    • Tax
    • Money
    • Lifestyle
    • Small Business Webinar Series
  • Tools 
    • Glossary
    • Tax Resources
  • Contact
Retirement

4 Things to Consider While You’re Planning When to Retire

As the decision to retire approaches, you’ll find the choice of when to retire is rarely black and white. Retirement- as you define it- is a personal blend of lifestyle expectations, health and financial confidence. According to the US Department of Labor, fewer than half of Americans have an estimate of how much they need with their retirement savings.1 That’s a scary fact considering the average American will spend 20 years or more in retirement. The US Department of Labor also estimates 30% of private industry workers who have access to a defined contribution plan (such as a 401(k) company plan) don’t participate.2 But you can be better than that. Asking the right questions about retirement will help you gauge your preparedness to know when you’ll be ready for retirement living.

ARE YOU IN GOOD HEALTH?

Approaching retirement in good health may help you budget your retirement savings for health and medical expenses. But, retiring early means you’re not eligible for Medicare until age 65. Today there are few companies that pay for retiree health insurance coverage. Will you pay for health insurance out of pocket, or will you seek out alternate employment to obtain health benefits from a new employer? If you retire before your full retirement age but earn employment income, the Social Security Administration will deduct $1 for every $2 you earn above the 2019 limit of $17,640.3 However, it may be worth your while to work simply for the healthcare benefits. Maintaining good health through diet, exercise and the management of chronic health issues is the foundation of a proper retirement strategy.

IS YOUR FINANCIAL HOUSE IN ORDER?

Financial fitness is just as important as personal fitness. Your retirement plan should start with a sound budget that balances your fixed retirement income with the ability to meet planned – and unplanned – expenses during retirement. Identify all sources of retirement income, including withdrawals from retirement accounts, Social Security, defined benefit pensions and any supplemental employment income. Understand your choices for when to draw Social Security and pension benefits; tapping into those sources early often means a decrease in the overall value of your payments. Assess your housing situation as well; decide if owning or renting is a better fit for your retirement budget and your lifestyle. To avoid a housing burden, aim to keep housing costs below 25-30% of your income.4

CAN YOUR FINANCIAL HOUSE WEATHER THE STORM?

A study by the National Bureau of Economic Research raised the issue of adequacy regarding retirement savings. In other words, how much is enough when saving for retirement?’The study reported 46.1% of people die with less than $10,000 to their name. 5 Adequate financial preparation depends on many variables. The average retiree will spend several decades in retirement as life expectancies currently average between ages 83 to 85. What is your life expectancy, given your current state of health? Can your retirement savings plan support that span of time, and is it structured to provide coverage for unanticipated health expenses and end-of-life costs? A close finish – with less than $10,000 in assets6 – might be far too risky for those who do not want to place a financial burden on family members…or for those who want to leave a financial legacy upon passing.

ARE YOU READY TO SAY GOODBYE?

Retirement isn’t only about leisurely days and vacations. When you part ways with the working identity you knew for 40 or more years, you may not recognize your new personality in retirement. Traveling may only fill a portion of your time; filling the rest of your days can be somewhat challenging. Even after completing routine household chores and spending hours on a hobby (or hobbies), many retirees still have more time available than they accounted for. This lack of engagement can take a toll both mentally and emotionally. Before you retire, develop a retirement plan to introduce new activities, interests and relationships to stay fully involved with the world around you.

The answer to Can I Retire? comes when you take the time to define retirement living on your own terms.

Dr. Daniel Crosby, PhD, is President at IncBlot Behavioral Finance.

 

Brought to you by The Guardian Network © 2017, 2019, 2021. The Guardian Life Insurance Company of America®, New York, NY

2021-124734 Exp. 8/23

SOURCES:

1, 2. 6 US Department of Labor, Top 10 Ways to Prepare for Retirement, 2019,

3 Social Security Income Limits, 2019

4 https://www.cnbc.com/2018/06/06/how-much-of-your-income-you-should-be-spending-on-housing.html

5 https://www.nerdwallet.com/article/finance/will-you-really-run-out-of-money-in-retirement

Share |
 

Related Content

Retiring the 4% Rule

Retiring the 4% Rule

A portfolio created with your long-term objectives in mind is crucial as you pursue your dream retirement.

3 Important Insurance Considerations for Retirees

3 Important Insurance Considerations for Retirees

Insurance policies are designed to help protect your livelihood, your loved ones, your property and those around you.

Roth 401(k) vs. Traditional 401(k)

Roth 401(k) vs. Traditional 401(k)

This calculator compares employee contributions to a Roth 401(k) and a traditional 401(k).

 

Have A Question About This Topic?









Thank you! Oops!

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2022 FMG Suite.

This website is intended for general public use. By providing this content, Park Avenue Securities LLC is not undertaking to provide investment advice or a recommendation for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information that is specific to your individual situation.

Nick Saleem

Securities products offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC.OSJ: 355 Lexington Avenue, 9 Fl., New York, NY 10017, Phone # 212-541-8800. PAS is a wholly owned subsidiary of Guardian Life Insurance Company of America® (Guardian), New York, NY. United Wealth Group LLC is not an affiliate or subsidiary of PAS or Guardian. AR Insurance License #2973673. CA Insurance License #0H03588. 

Asghar Kazim

Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 355 Lexington Avenue, 9th Floor, New York, N Y 10017- 6603, Phone # 212-541-8800. PAS is a wholly owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY.  United Wealth Group LLC is not an affiliate or subsidiary of PAS or Guardian. California Insurance License # 0C53306.  AR Insurance License #703269.

This Forbes award is not issued or endorsed by Guardian or its subsidiaries.
Important Disclosures

Online Terms of Use

Online Privacy Statement

2021-126035  exp 8/30/23

Contact

United Wealth Group LLC
Office: (732) 355-1050
Fax: (732) 355-1051

Princeton Executive Center
4301 Route 1 South; Suite 220
Monmouth Junction, NJ 08852

FINRA Series 6, 7, 24, 63 & 65

akazim@unitedwealthllc.com

LinkedIn YouTube

Quick Links

  • Retirement
  • Investment
  • Estate
  • Insurance
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations