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With health care costs continuing to increase, the future of Social Security unclear and pension plans available to fewer and fewer workers, America’s retirement readiness is a major concern for both individuals and the nation as a whole.

Since June 2004, Fidelity Investments has completed about 200,000 income plans for retirees and pre-retirees who faced the daunting task of gauging their preparedness for retirement. Fidelity learned that some simple, yet often ignored, investment strategies can help ensure a more comfortable retirement. Here are some basic strategies to consider.

* Make it work while you’re still working. Investors in their peak earning years should take full advantage of employer-sponsored retirement plans, individual retirement accounts and deferred annuities.

Asset allocation should be age appropriate and investors should avoid two common retirement savings mistakes: being overly cautious or taking excessive risks when deciding how much of their assets to invest in cash, stocks or bonds. Remember, though, that this does not ensure a profit or protect against a loss.

Individuals also may want to take into account simple tradeoffs that can reduce expenses and increase savings, such as holding on to the family car a few extra years once it has been paid off.

* Make it last as long as you do. Once you reach retirement, stretching retirement savings to make it last is very important. Some investors are planning to work in retirement while others are postponing retirement to take advantage of added income and continued health care benefits.

Pre-retirees may want to consider putting their salaries into income annuities, which some call “self-made pensions” because they provide guaranteed lifetime income.

Finally, given that Americans are living longer, and that market returns are unpredictable, smaller withdrawals in the early years of retirement could lead to greater long-term financial security.

* Make it count to live the lifestyle you want. Typically, investors who are able to achieve the retirement lifestyle they want have created a detailed, realistic budget for retirement living expenses. Investors should plan for rising health care costs and other financial contingencies. To help stay on track, individuals and their spouses should review their plans annually, including expenses, investments and asset allocation.

Creating a successful retirement takes more than a one-step solution. Whether it’s finding a “fun” part-time job, eliminating one of the family cars or taking a vacation locally, retirees have implemented multiple strategies to extend their incomes, control their spending and maximize their savings. – NU

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With health care costs continuing to increase, the future of Social Security unclear and pension plans available to fewer and fewer workers, America’s retirement readiness is a major concern for both individuals and the nation as a whole.

Since June 2004, Fidelity Investments has completed about 200,000 income plans for retirees and pre-retirees who faced the daunting task of gauging their preparedness for retirement. Fidelity learned that some simple, yet often ignored, investment strategies can help ensure a more comfortable retirement. Here are some basic strategies to consider.

* Make it work while you’re still working. Investors in their peak earning years should take full advantage of employer-sponsored retirement plans, individual retirement accounts and deferred annuities.

Asset allocation should be age appropriate and investors should avoid two common retirement savings mistakes: being overly cautious or taking excessive risks when deciding how much of their assets to invest in cash, stocks or bonds. Remember, though, that this does not ensure a profit or protect against a loss.

Individuals also may want to take into account simple tradeoffs that can reduce expenses and increase savings, such as holding on to the family car a few extra years once it has been paid off.

* Make it last as long as you do. Once you reach retirement, stretching retirement savings to make it last is very important. Some investors are planning to work in retirement while others are postponing retirement to take advantage of added income and continued health care benefits.

Pre-retirees may want to consider putting their salaries into income annuities, which some call “self-made pensions” because they provide guaranteed lifetime income.

Finally, given that Americans are living longer, and that market returns are unpredictable, smaller withdrawals in the early years of retirement could lead to greater long-term financial security.

* Make it count to live the lifestyle you want. Typically, investors who are able to achieve the retirement lifestyle they want have created a detailed, realistic budget for retirement living expenses. Investors should plan for rising health care costs and other financial contingencies. To help stay on track, individuals and their spouses should review their plans annually, including expenses, investments and asset allocation.

Creating a successful retirement takes more than a one-step solution. Whether it’s finding a “fun” part-time job, eliminating one of the family cars or taking a vacation locally, retirees have implemented multiple strategies to extend their incomes, control their spending and maximize their savings. – NU

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• Smart Moves for Retirement Readiness (0)
• Way to put aside money for your retirement – Topinvest.bg (0)
• Using Your Health Savings Account to Build Retirement Savings (0)
• Types of Retirement Plans (0)
• How to Plan Your Retirement Abroad (0)

As the Baby Boomer generation continues to grow older, their primary concerns have shifted to their health, money and retirement. The days of idly wondering where their next vacation should be and whether their bonus check will be as much as they deserve are quietly passing. Today, Baby Boomer issues are mostly about concerns with maintaining their dwindling health and having enough money to live comfortably through their twilight years.

Health Concerns For Baby Boomers

As people grow older, they often experience problems with their health. Their bodies grow more fragile and susceptible to diseases and bacteria. In addition, many people 50 years of age and older are reporting health problems that were not experienced by people in their same age group long ago.

This problem is exacerbated by rising health care costs. As the Boomer generation begins to require more medical care, the cost of that medical care continues to increase. Health issues and their ability to cope with them and find the proper medical support is a major concern for Baby Boomers.

Money And Retirement Concerns For Baby Boomers

Along with rising health care costs, Baby Boomers also worry about money and retirement. During the last several years of their careers before retiring, people usually enjoy salaries and bonuses that are larger than at any other point in their career. As a result, money is rarely a major concern.

However, many people fail to save that money. Instead, they spend it on vacations, their families and in the pursuit of living fun and fulfilling lives. This can lead to a rude awakening when they retire. Because they have not saved much money during their career, a lot of people discover that they do not have enough money to live comfortably during their retirement years.

When they retire, they no longer earn a salary. They no longer receive bonus checks. Instead, they are forced to live off the income that can be generated by the investments they have made throughout their lives. Unfortunately, many have not invested any money that can generate this income.

Other Baby Boomer issues complicate this money problem. People live longer lives today. When a Baby Boomer retires, he can expect to live many years in retirement. In the past, a 65-year old man could expect to live approximately 10 years in retirement before passing away. The financial requirements of living comfortably for these 10 years were manageable for most people.

Today, financial planners use a life expectancy of 90 to 95 years. That is, when a person retires at 65 years of age, he can expect to live up to 30 years in retirement. With dwindling health, rising health care costs and a lack of savings to generate a fixed income, the financial requirements of living 30 years in retirement are out of reach for many people.

These health, money and retirement concerns will grow as more of the Baby Boomer generation moves into retirement. Some will choose to work part-time jobs to keep active, stay healthy and generate supplemental income. Others will require the aid of family and friends. Still others may require more help than is available to them. As the Baby Boomer issues are beginning to emerge the Boomers will experience the issues that have been quietly gaining momentum for years, their health, money and retirement concerns will continue to grow.

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