Category Archives for Finance

What the Fieldings can teach us about retirement planning

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Many movies are popular because audiences find the characters and the situations they are in to be so relatable. The Money Pit is one such movie. Although most of us will never find ourselves in a predicament like that, the movie can teach us some lessons about effective retirement planning.Continue reading

What are retirees’ actual expenditures? Results of the HSBC survey

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Many retirees’ spending patterns are different than they envisioned in preretirement. Most people retire several years earlier than they expected. A significant percentage of both preretirees and retirees wish they had started saving for retirement earlier and had saved more.

These are some findings in a report recently published by HSBC Wealth Management, entitled The Future of Retirement: Generations and Journeys. The findings are based on a survey of over 1,000 preretirees and retirees in the U.S. and more than 18,000 workers and retirees in 15 foreign countries.

The HSBC survey is one of a series of recurring surveys conducted by various organizations that have useful insights for both retirees and those planning for retirement.Continue reading

7 things to do if you stay in your home after retirement

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Many seniors choose to stay in their homes for years after retirement. Living at home provides the comfort of familiar surroundings and enables seniors to maintain independence and control over their lives. But there are some risks associated with living at home. A few simple safeguards can help seniors protect themselves.Continue reading

Choices you make that will affect your entire retirement

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The decisions you make just before and after retirement can affect the quality of life throughout your retirement. While there’s plenty of flexibility in retirement planning, it’s important to get these some major things right. Yet lots of retirees take the wrong course, for various reasons. Some of these are choices made with the best of intentions that turn out to have disastrous consequences. Some are just made out of lack of planning, or making decisions in haste, or simply habit. Here are some common mistakes made when retirement is coming close.Continue reading

Lessons from retirees: the 2016 TIAA Voices of Experience survey

 

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The Teachers Insurance and Annuity Association of America (TIAA) recently issued its 2016 Voices of Experience survey report. For the survey, TIAA reviewed responses from over 1,500 retirees, the majority of whom (55 percent) had worked in higher education. A small percentage had also worked in public education or health care. Three-fourths of survey respondents had earned a college degree, and more than half (60 percent) held a masters degree or higher.

Although the results may not be representative of retirees as a whole, the results are consistent with survey responses of other groups and offer useful lessons and insights for retirees and pre-retirees of all ages.Continue reading

How to make your retirement savings last

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Many Americans close to retirement are concerned that they will not have enough savings to last throughout their retirement. According to Northwestern Mutual’s recently released Planning and Progress Study, 85% of Americans report anxiety about their finances. Two-thirds believe there is a chance they will outlive their savings; one-third think the likelihood is 51% of more; and 14% think they will definitely outlive their retirement savings. However, 44% report they have not taken any steps to address this situation.

Here are several important things you can do if you’re concerned about whether your savings will last.Continue reading

Can you just work longer?

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Surveys show the majority of Americans are short of what they will need for retirement. The Employee Benefit Research Institute’s 2016 Retirement Confidence Survey found that almost 75% of workers have $100,000 or less in savings. Many financial advisors propose the solution is to just keep working. Suze Orman recently suggested that those who have a job should keep working until 68.Continue reading

How to make up the gender retirement savings gap

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Men make higher salaries than women on average. Women often take time off to start a family, and then work part-time when they do return to work, so that they receive lower wages and fewer benefits than their husbands. Yet women live longer on average, so their retirement savings have to last longer and their retirement expenses are higher.

The result is that there is a retirement preparedness gap between men and women. A Vanguard study found that women are more likely to participate in employer savings plans and save at higher rates. But because of their lower earnings, men have about 50% more retirement savings than women. Here are some ways that women can make up this gap.Continue reading

How healthcare costs can eat away your Social Security

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Originally created during the Great Depression as a safety net for workers and their families, Social Security has become a major source of income for many retirees. If you’re in retirement or getting close, chances are good that Social Security is featured prominently in your financial planning.

You may have heard that Social Security funding is in a precarious state. But rising healthcare costs pose an even greater risk.Continue reading

When should you claim Social Security?

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One of the biggest decisions for most retirees is when to claim Social Security retirement benefits. A majority of retirees depend on Social Security for the bulk of their income, according to the Social Security Administration. The decision of when to take benefits has repercussions not only for your retirement, but also for your spouse and family.Continue reading

How today’s retirees are doing: Findings from the latest Transamerica survey

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Most new retirees and those approaching retirement say they’re short of what they need for retirement, but nevertheless are confident in their prospects for a successful retirement. The majority of retirees left the workforce earlier than planned. Most retirees are in good health and expect a long retirement. The vast majority of retirees are happy and enjoying life.

The Transamerica Center for Retirement Studies just released the results of its 16th annual retirement survey, and those are some of the major findings. The survey results are always enlightening, and reinforce timeless lessons for those preparing for retirement.Continue reading

Want to start a business in retirement? Here are some things to consider

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Are you thinking of starting a new business in retirement? If so, you’re not alone. Starting and running a business comes with challenges, but can be rewarding for active retirees who want to bring in income while serving their communities. Although many retirees open businesses out of passion and a sense of purpose, any income you do earn will help you pad your retirement savings so you can spend a little more or leave a larger inheritance. Here are some considerations for starting a business in retirement.Continue reading

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