April is Financial Literacy Month. At Paladin Advisor Group, our mission is to help clients Champion Your Financial Life through understanding investment strategies, financial goals for day-to-day life and empowering the next generation to make smart financial decisions.
In celebration of Financial Literacy month, we’ve narrowed down some key elements that - when implemented correctly - could make a difference in how you think, feel, and interact with your money.
As the last blog of the month, we thought we'd focus on retirement planning basics. What makes up a holistic retirement plan? And what does that even mean?
Paladin Advisors work with clients to create retirement plans based on personal strategy. For new clients and interested prospects, we offer a complimentary Retirement Plan Analysis, where you'll discover holes in your current strategy and develop a new retirement plan to Champion Your Financial Life. Holistic strategies are made up of retirement savings accounts, well-earned employment benefits and cash flow planning:
- 403 (b) / 457 (b)
- 401 (k) / 401 (k) Rollover
- IRA/Roth IRA investments
- Partnership Planning
- Retirement Accumulation
- College Planning
- Life Insurance
- Cash Flow Planning
- Debt Reduction Strategies
- Annuities
- Government benefit coordination
- Health Care for Seniors
- Tax Planning*
- Legacy Planning
- Efficient Investment Strategies
- Asset Planning
- Trust and Will Planning
Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you.
- Many consider the standard retirement age to be 65. One of the key influencers in arriving at that age was Germany, which initially set its retirement age at 70 then lowered it to age 65.1
- Every day between now and the end of the next decade, another 10,000 baby boomers is expected to turn 65. That’s roughly one person every 8 seconds.2
- In 2018, people aged 65 and older accounted for 15% of the population in the U.S. By 2060, they are expected to represent more than one in four Americans.3
- Ernest Ackerman was the first person to receive a Social Security benefit. In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢. Ackerman worked one day under Social Security. He earned $5 for the day and paid a nickel in payroll taxes. His lump-sum payout was equal to 3.5% of his wages.1
- Sixty-seven percent of retirees say they are confident about having enough money to live comfortably throughout their retirement years.4
- People aged 65 and older account for 34% of all prescription medication use and 30% of all over-the-counter medication use. Nearly nine of 10 adults aged 65 years and older say they have taken at least one prescription drug in the last 30 days.5,6
- Fifty-nine percent of retirees were dependent upon on Social Security as a major source of their income. The average monthly Social Security benefit at the beginning of 2019 was $1,461.4
- Centenarians – in 1980 there were 32,000 of them. Today there are more than 86,248 And 79% of them are women.7
- Seniors age 65 and over spend a lot of time watching TV, on average, over 4 hours a day.8
Conclusion
These stats and trends point to one conclusion: The 65-and-older age group is expected to become larger and have more influence in the future. Have you made arrangements for health care? Are you comfortable with your investment decisions? If you are unsure about your decisions, maybe it’s time to develop a solid strategy for the future.
Let us help you.
Schedule a Retirement Plan Analysis today by clicking here.
*Please note that PlanMember nor any of its agents or representatives give legal or tax advice. For complete details, consult with your financial advisor, tax advisor or attorney.
1. The United States Social Security Administration, 2019
2. Forbes, 2018
3. The United States Census Bureau, 2018
4. Employee Benefit Research Institute, 2019 Retirement Confidence Survey
5. Medscape, 2019
6. UptoDate.com, 2019
7. The United States Census Bureau, 2018
8. U.S. Bureau of Labor Statistics, 2018
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. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named 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. Copyright 2021 FMG Suite.