Everyone needs to plan for retirement, but very few of us seriously consider it until it’s too late. Many workers are mistaken in thinking that they will need less than two-thirds their annual income in retirement. So it’s not that surprising that a recent survey from the Employee Benefit Research Institute found that 29% of workers report they have less than $1000 in savings, and 56% says they have less than $25,000 in savings and investments. It may seem strange to say that retirement will take many people by surprise, but it will. Our current economy, and failing to plan for retirement early in life, explains why 44% of boomers lack confidence in being able to retire at the traditional age of 65.
Thankfully, there are excellent companies like Aviva whose professionals offer a broad array of retirement products and who advise workers not only on the best way to plan for retirement at every stage of their life, but also how to allocate their savings in a manner that will allow them the best use of their money when they need it. This means not only investing appropriately, but also being aware of other important factors, such as knowing the right kinds of insurance to purchase that can ultimately help them defray the costs associated with growing older. For example, health insurance and long term care insurance should be viewed as essential investments, as they will pay for the costs of a variety of healthcare services that they will likely need as they age. This will leave more of our money available for travelling, a new home or car, going out to dinner, entertaining friends, etc.
Aviva can also help avoid some of the many pitfalls of retirement planning and remind workers of the importance of planning for their healthcare expenses. If Retirement Community living is a chosen option, then living in those Communities that offer on-site physician care is one important way to help maintain the best health possible and thereby reduce healthcare spending.
Workers must be aware that they may spend 20 or more years in retirement, and so a thoughtful approach to financing these ‘golden years’ is important. Consulting a retirement professional is an important step in guiding workers through this final and potentially most fulfilling stage in their lives.