The Post-Pandemic Retirement Survival Guide - Part 2

Like the 67-year-old gentleman who underwent formal retirement planning. For every expense cut, he ostensibly gained time. For every year gained away from his job, the richer the picture of his life became. He realized the impact of his decisions immediately through the improved results of his financial plan.

How sub-optimized are your relationships?

As you grow as an individual, consistently optimize relationships to determine who is worthy of your presence.  Surround yourself with those wiser (not just book but life smart) who will motivate you out of your comfort zones. Also, people who can make you laugh and share a lighter perspective will inspire optimization!

Now that you’re in the mood to bust boundaries around money, keep in mind that any account can be a retirement account. Just because it’s not held with your employer or doesn’t have “IRA” in the title doesn’t mean the dollars you save don’t apply to retirement. Society, to a degree, has encouraged mental accounting by sanctioning retirement vs. non-retirement accounts.

As part of your change in thinking, consider all money in one pool. You decide how it flows to its most honorable (and hopefully lucrative) conclusion.

 

A recent study has a positive conclusion.

On a positive note, www.EBRI.org outlines overall encouraging results in their long-running Retirement Confidence Survey.  The survey of over 3,000 Americans in January showcases the resiliency of retirement confidence where half of the workers and 7 out of 10 retirees are somewhat confident in living comfortably in retirement.

More than half of workers and a third of retirees call debt a problem. Half of the workers say their non-mortgage debt negatively impacts their ability to save for retirement in general and 4 in 10 say it negatively impacts their ability to participate in a workplace retirement plan.

The top five actual sources of retirement income are Social Security (92%), followed by personal savings (66%), company retirement plans, and defined contribution plans. The results showcase the importance (devoid of emotion) of making the right decision regarding Social Security claiming strategies. Confidence in Social Security continuing to provide benefits of at least equal value to those received today also reached an all-time high among retirees (72%) and workers (53%).

Medicare and Social Security are essential.

Three-quarters of retirees and two-thirds of workers feel confident they will have enough money to handle medical expenses in retirement. An increase from 2020 among retirees. Also up significantly from last year and reaching an all-time high for both retirees and workers, 3 in 4 retirees and nearly 6 in 10 workers are confident that Medicare will continue to offer benefits of at least equal value to those received today.

As we stress at RIA, Social Security and Medicare are crucial to retirement security regardless of saving and investment habits, so our planners spend much time educating clients on the topics.

Unfortunately, one out of three workers says that the pandemic has negatively impacted their ability to save for retirement. To read the complete survey, click here.

Overall, I believe worker and retiree awareness of expenses and other goals in retirement has reached a new level. And that’s a good thing as it will enhance mental resiliency to switch gears, change course, adjust accordingly and yet still happily define a personal and fulfilling retirement lifestyle even if it’s modest at best.

Here’s what to do next.

Ask yourself the questions: How do I define retirement outside the boundaries of money and investments? What can I do to maintain a fulfilling retirement experience based on simplicity and internal drives of happiness instead of outward displays of wealth? 

We possess the power and skills to craft a retirement lifestyle that’s genuinely and internally worthwhile. It will be perfect, individualistic, and reside within the boundaries of what’s truly important to our well-being.

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Disclosure: Real Investment Advice is powered by RIA Advisors, an investment advisory firm located in Houston, Texas with more than $800 million under management. As a team of certified and ...

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