Everyone is very busy. Why do something today when you can put it off until tomorrow? Are you one of those who defer planning for your retirement until the year of your retirement? Are you qualified to plan for your retirement?
The American College of Financial Services (ACFS) conducted a Study which focused on the need for Americans to increase their retirement income literacy. It is your ultimate responsibility to know how much money you need to accumulate to retire comfortably and how to manage your money during retirement.
Today’s retirees are faced with changes that earlier generations did not. For example,
- Whereas most Americans in the past received a life-time pension from their employer, today’s retirees are likely dependent upon how well they managed their 401(k) plan.
- The Social Security Administration (SSA) recently announced that there would be no cost-of-living increase (COLI) for 2016.
NOTE: It is very possible in future years retirees who receive Social Security benefits will continue to see a decrease in their monthly benefit check. Why? The increases in the Medicare premium taken out of SS retirement benefits each year (to keep pace with the cost of health care) will likely be greater than the COLI adjustment to SS.
The ACFS Study is worth reading as it discusses such findings as . . .
- The lowest level of knowledge related to understanding how annuities and life insurance can be used for retirement purposes
- The lack of knowledge of how to preserve assets in retirement
- The most effective actions to be considered in pre-retirement years to improve financial security in retirement
- Lack of knowledge about investment products
- Only 1 in 4 have a written retirement plan
- While 2/3 of the people between the ages of 60-75 with a retirement nest egg of at least $100,000 use a financial advisor, their retirement knowledge was lacking
- 1 in 3 persons have never attempted to figure out how much they need to accumulate to retire financially secure
- Lack of knowledge regarding when to begin to receive SS benefits
- Lack of knowledge about long-term care and the challenges that may surface
As outlined above, the ACFS Study found that there is a lack of knowledge about numerous retirement issues. The Study stated that “Education will be difficult if consumers do not want to put that much thought into this topic.” The Study found that many people take the attitude of “do it for me” and delegate full responsibility to the financial advisor to handle everything.
If you want to take control of your retirement plan (or discuss your personal tax planning and tax preparation concerns with an experienced tax professional), we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.