RETIREMENT • Read Time: 3 min
Retirement Realities
Expectations vs. Reality
Predicting exactly what your retirement will be like is about as possible as a meteorologist predicting the weather correctly every single time. In fact, few retirees find their financial futures playing out precisely as they assumed. But, understanding some of the more common assumptions about retirement may help you get closer to your goal than most.
Do retirees actually “outlive” their money?
Generations ago, as people retired, many did live in dire straits, sometimes “down to their last dime,” which lead to the creation of Social Security. Today, Social Security is still around and a common supplement to one’s retirement strategy. True, health crises can sometimes impoverish retirees, but working with a financial professional may even help you prepare for this hard-to-anticipate cost.
Retiring on 70-80% of your end salary may not be feasible
A quick internet search reveals all sorts of sources instructing new retirees should strive to retire on 70-80% of their end salary, but it can be a tough one to achieve.
Most new retirees often want to travel, explore new pursuits, learn some hobbies, and finally get around to those things they had put off when they were too busy with work. So, in the first few years, some may spend roughly as much as they did before retirement.
Practice makes perfect, even in retirement
Retirement may arrive earlier than expected
Living the life you want
Remain flexible in retirement
Your retirement may differ slightly or even greatly from the retirement you have imagined. Fortunately, it may be possible to create a flexible retirement strategy with the help of a financial professional. It’s never too late to start!
1. JP Morgan, 20192. Yahoo Finance, 2018
3. Gallup, 2018
4. Forbes, 2019
The content is developed from sources believed to be providing accurate information.The information in the material in 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 professional for specific information regarding your individual situation. The opinions expressed and material provided are for general information, should not be considered a solicitation for the purchase or sale of any security.
Have A Question About This Topic?
Related Content
Should You Borrow from Your 401(k)?
Does it make sense to borrow from my 401(k) to pay off debt or to make a major purchase?
IRA Withdrawals that Escape the 10% Tax Penalty
The list of IRA withdrawals that may be taken without incurring a 10% early penalty has grown.
Investment Strategies for Retirement
Investment tools and strategies that can enable you to pursue your retirement goals.