The number of retirees in the U.S. will increase 40 percent by 2035. While four in ten pre-retirees have major concerns about running out of money during retirement, households with a plan feel less concerned about outliving assets than households with no plan.

Working with a financial professional to develop a plan provides retirees and non-retirees with confidence in their retirement security. Despite this, only 18% of pre-retirees work with a financial professional to develop a plan for retirement.

There are 5 key risks to lifetime income that need to be considered:
  • Longevity: Clients should be prepared for the possibility of living into their 90’s and their income needs to last as long as they do.
  • Inflation: A 3% inflation rate nearly double income needs in 20 years, drastically eroding buying power over time.
  • Health Care Expense: Health care expenses tend to increase dramatically in retirement and can significantly drain a retirement plan.
  • Withdrawal: Even a conservative withdrawal rate can jeopardize the resources needed to last a lifetime.
  • Asset Allocation: A balanced allocation keeps some assets in growth-oriented investments, providing the opportunity to grow faster than inflation and to last throughout retirement.

Following a process helps protect against retirement income risks. Part of developing a retirement income plan is identifying any income gaps and including solutions to help fill them. Ideally, income sources provide income to cover essential expenses and discretionary spending. Without proper planning, income may need to be shifted, reducing discretionary spending to cover only essential expenses.

Don’t wait to develop a plan. Contact us today to schedule your no-cost consultation:
Email: info@JeffersonAssetManagement.com
Call: 434-566-3570

We look forward to speaking with you!