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Four Reasons Americans Are Retiring Later
When was the last time you sat down and looked at your financial plan and your path to retirement? If it’s been a while, your goals might have shifted and it’s possible that your intended retirement age has shifted too.
Three different research studies point to Americans retiring up to four years later in life than they did just a few decades ago. For most of the 100 years prior to these studies, people began retiring younger, but four different factors are contributing to later retirement ages. It may be necessary for you to adapt your asset protection planning, estate planning, financial planning, and insurance-related goals associated with shifts in your intended retirement age.
The first reason many people are shifting their retirement age is social security. When the full retirement age was raised from 65 to 67 in the 1980s, many people pushed their own retirement age in order to focus on getting these benefits. The second reason for these changes is that Americans have mostly switched from defined benefit plans like annuities and pensions to defined contribution plans. Pensions allow workers to know exactly how much they’ll be paid in retirement but a 401(k) means that a worker only knows how much they are saving. The third major reason people are pushing the retirement age back is health insurance.
Being concerned about paying medical bills is a top priority. Costs for health care in the United States have gotten worse in recent years but someone who stays with an employer may still have coverage.
Finally, healthier retirees are also living longer. Living longer means stretching out your financial assets for more years. If this is a top priority for you and you want a financial plan that works alongside you, set aside a time to meet with our experienced financial team. We’re here to support you with every aspect of your financial future.