Do You Share These Common Fears About Retirement?

Asset Protection Group | Feb 20, 2022

When we help clients put together a long-term retirement plan, we usually prefer to focus on goals. How do you envision your retirement? Where do you want to live? What is your expected lifestyle? These questions, and more, help us to pinpoint your financial needs and set goals for the future.

But it’s normal to feel a bit of fear, too. Retirement is a major life change, and change can trigger anxiety. According to the 20th annual Transamerica Retirement Survey of Workers, Baby Boomers reported two primary worries with regard to their retirement plan:

  • 45 percent worry about outliving their retirement savings and investments
  • 46 percent say that their primary fear is that the Social Security program will be reduced or cease to exist

The first fear is certainly understandable. With so many people living two or more decades into retirement, it is definitely wise to consider the longevity of your savings. DIstributions must not only last throughout your lifetime; they should also account for rising inflation and your standard of living. An experienced financial advisor can discuss this situation with you, and help you decide how to withdraw funds in such a way that your money lasts as long as possible.

As for Social Security, we don’t have solid reasons to believe that the program will disappear altogether. But yes, there are challenges with regard to funding benefits. But the bigger issue seems to be that so many people (37 percent of Boomers, according to Transamerica) are counting on Social Security to provide their primary income in retirement! And according to Social Security itself, payments will only replace about 40 percent of income for retired, middle-income workers. That leaves a large income gap for you to fill, if you want to continue your current lifestyle.

So yes, these fears are reasonable. But the first step is to understand that Social Security was meant as a supplement to other retirement income, such as savings and investments. Then, together we will formulate a plan for those savings and investments to help that income last (hopefully) for the rest of your life.


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