Thinking, saving, and planning for retirement

Top factors preventing workers from feeling financially comfortable in retirement.

Source: Inside your client’s mind: Thinking, saving, and planning | Principal

A number of these concerns are related to the age at which person seeks to retire. The longer a person is retired the greater the risk.

For example, if one retires at age 65 or later and has Medicare, their health spending out of pocket – excepting long-term care – is highly predictable. The same is true for premiums. Part B, Part D and supplemental coverage are predictable and can be planned for over time.

Pre-65 retirement is another matter. The best choice is likely using a ACA exchange plan, but out-of-pocket costs can be high and premiums based on income can be too.

The concern that Social Security won’t be available in retirement is simply not valid. Unless you believe that SS payroll taxes will be stopped, the program cannot go broke.

One comment

  1. Since graduating high school in 1980, I never expected Social Security to be around. During the Reagan administration a band aid was put on Social Security. For the last decade or more, the Social Security administration has warned on every annual statement that there is only enough money to pay between 76-78% of the promised benefits by 2033-2034 (depending on annual trust fund report cited). I may only get a few years at full benefit.
    I have no faith that Congress will fix it soon. If Congress doesn’t fix it, there will be a second civil war. But the rate our country is heading towards socialism, there is liable to be a whole new social-medical entitlement program. Leaving other national political issues to another blog, the fact remains the drum beats of free this, free that, and debt forgiveness, larger COLA, etc is going to make it even harder for Congress to do a proper fix for Social Security. The longer they wait the harder it will be. I also think due to some other hot topic issues, Social Security has been sidelined for the midterms.

    Liked by 1 person

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