{"id":15809,"date":"2023-09-11T09:29:24","date_gmt":"2023-09-11T14:29:24","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=15809"},"modified":"2023-09-11T09:29:24","modified_gmt":"2023-09-11T14:29:24","slug":"financial-planning-for-a-longer-retirement","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/financial-planning-for-a-longer-retirement","title":{"rendered":"Financial Planning for a Longer Retirement"},"content":{"rendered":"

An increasingly aging society is reshaping our perspective on retirement and how we prepare for it. As individuals live longer and healthier lives, let’s explore what this might mean for your retirement strategy.<\/b><\/p>\n

Access to quality health care is changing how people age in our modern world. Some scientists even say that aging can be reversed, and someone who will live to<\/span> 150 years might already be alive.<\/span><\/a> As we embrace longer life expectancy, we must update our financial plans to help us support this new chapter in our lives.<\/span><\/p>\n

In this blog, we’ll delve into these crucial aspects of financial planning to help you pave the way for a comfortable and worry-free retirement. Here’s what you need to know.<\/span><\/p>\n

Reconsidering When You Retire<\/b><\/h4>\n

If you find yourself in good health, you might want to reconsider when you’ll retire. Abou<\/span>t 66 million people, or about 1 in every 5 U.S. residents,<\/span><\/a> collected Social Security benefits as of February 2023.\u00a0<\/span><\/p>\n

When the Social Security program started in the 1930s, <\/span>the retirement age was set to 65<\/span><\/a>, the average life expectancy. If you retire at 65 today, you might have to use your savings for the next 20 to 30 years, which can be challenging if you have a little money saved.<\/span><\/p>\n

58% of people<\/span><\/a> saving for retirement (including those already retired) say their biggest worry about retiring is that they might run out of money to live on. This concern is even more vital for people close to retiring (like Generation X and Baby Boomers).<\/span><\/p>\n

Because of this, many people are choosing to keep working longer than they first anticipated, either full-time or part-time, so they can save more money before they start using their retirement funds. A recent <\/span>Transamerica Center for Retirement Studies survey <\/span><\/a>found that 55% of workers plan to keep working after they retire. About 20% want to work full-time, and more than a third plan to work part-time.<\/span><\/p>\n

This can prove a beneficial strategy, especially if you’re still healthy and feeling mentally fit so you can keep adding to your savings. Delaying retirement helps make sure you have enough money and also gives you something to do that keeps you thinking and gives you a sense of purpose.\u00a0<\/span><\/p>\n

Having a Comprehensive Savings Fund<\/h4>\n
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A <\/span>savings plan acts<\/span><\/a> as a roadmap for wealth, helping you save for the lifestyle you want during retirement. A comprehensive savings plan covers short-term and long-term goals. It considers how much money you make, how long you have to save, and how much you can set aside.<\/span><\/p>\n

To start your savings plan, list all your income sources and determine what you want to save for. Once you know your goals, you can decide how much money to put aside each month. Lastly, you choose where to keep your savings. For example, keeping your money in a high-yield savings account can help your wealth grow faster.<\/span><\/p>\n

A good savings plan helps you decide which goals are most important to you so you can work towards them first. It\u2019s important to note that each person\u2019s retirement dream will differ based on what you want to accomplish in your golden years. By incorporating a detailed savings plan into your retirement strategy, retirees can enjoy financial security, peace of mind, and the freedom to enjoy their later years confidently.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

Addressing Inflation in Your Investments<\/b><\/h4>\n

Inflation<\/a> erodes the purchasing power of money over time. To curb inflation’s effects, diversifying your investment portfolio is essential. Diversification helps mitigate risk and positions your investments to grow over the long-term, helping your wealth keep pace with rising costs. Here are some tips to address inflation in your investments:<\/span><\/p>\n