With rising inflation and recession concerns, a recent pandemic, and widespread workplace adjustments, the concept of retirement seems a little more complex than it used to be. According to a recent CNO Survey[1], 68% of respondents are concerned that they have not saved enough for the life they planned in retirement. Does this sound like you? We’ve compiled a few steps you can take to help feel confident in your retirement decision.
Have a Plan on How to Spend Your Time
What does your vision look like for retirement? Do you want to travel, spend time with grandkids, or start a business? The list goes on and on. Having a plan to keep busy and get the most out of retirement is a primary step for a successful retirement. Once you have a grasp on your goals, you can financially plan accordingly.
Have a Plan with Your Financial Representative on Timing:
Having enough invested for retirement is the first concern most people address when thinking about retirement. There are many methods to determine if this has been achieved, but what if you didn’t quite hit your goal? Now what? Here are a few things you can do to help with retirement funding:
- Move to a less Expensive City
- Retire with a Side Hustle
- Revisit Your Budget
- Push for Retirement Savings: Commit your tax refund or bonuses to retirement
- Move Retirement Back a Few Years
- Retire on Less
- Continue to Work
- Downsize Your Home
Revisit Insurance to Lock Down Health Expenses
This is a big factor on determining when to retire. Health care costs are a major expense and those moving from company-sponsored health insurance plans need to find an alternative in retirement.
Medicare can start at 65, but certain deductibles need to be met for coverage and these can be expensive. One more step to a seamless retirement is to decide what kind of health insurance coverage is needed for you and your family. Having this box checked helps you move on to the next step in retirement planning.
Bankers Life can help answer your questions about health insurance solutions for retirement. Get paired with an agent today and check health insurance off of your retirement checklist.
Calculate Rising Costs into Your Retirement Budget
Inflation is a hot topic this year and has caused some concerns for potential retirees. According to CNO’s Q1 Survey[2], 76% of respondents have concerns that rising costs of living will prevent them from enjoying retirement.
Calculating an average inflation rate into your retirement budget can relieve stress surrounding raised costs. The average inflation rate from 1960 – 2022 was 3.8% per year. In 2023, America saw an 8% inflation rate. Use this data to factor in inflation as part of your retirement budget.
There is also some good news for retirees planning to draw on Social Security. In January 2023, the Social Security Administration increased payments by 8.7% through a Cost of Living Adjustment (COLA), which equals approximately a $140 increase per month.
Lean on Bankers Life for Retirement Support
Bankers Life is here to support your retirement journey. We are prepared to answer your questions about retirement and help bring your vision to life.
[1] Q1 2023 CNO Customer Advisory Board Survey: Helping Consumer Navigate Economic Uncertainty, 68% of respondents have concerns that they have not saved enough for the life they planned in retirement, 2023
[2] Q1 2023 CNO Customer Advisory Board Survey: Helping Consumer Navigate Economic Uncertainty, 76% have concerns that rising costs of living will prevent them from enjoying retirement, 2023
