A growing number of Americans are heading into retirement with more questions and concerns than confidence. Most people say they want to retire at 64—but now expect to work until at least 70. Some are even planning to return to work after retiring, just to make ends meet.
Why the shift? Financial stress plays a major role. Recent surveys cite inflation and rising health care costs as top concerns. This pressure forces many to reassess their retirement expectations. Additionally, Social Security alone is not providing what many believed would cover their retirement expenses. This disconnect stems from a misconception about the program’s original purpose. When Social Security was created, its goal was to provide basic financial protection for the elderly, unemployed, and others facing difficult times. It was designed as a safety net, not a full retirement plan. As a result, today’s retirees are facing real challenges.
Add in rising taxes, concerns about market ups and downs, and the fear of running out of money, and it is easy to see why so many people are concerned.
Gen Xers are feeling the pressure especially hard as they get close to wrapping up their highest earning years and starting to think seriously about retirement. But many are worried they will not be ready in time.
Millennials share similar concerns as they’ve seen what happens when families are not financially prepared.
Much of the pressure comes from the fact that workers today are left on their own when it comes to retirement planning. Many people don’t realize the market risk, the tax status, and that they can’t work forever. Pensions have become a thing of the past. Instead, people are expected to manage their own 401(k) plans, how much to contribute - and online no less. That can be overwhelming, especially when put at risk of market fluctuations.
The good news is, there are ways to feel more secure - by securing your money. Establishing reliable income streams or personal pensions that last a lifetime and avoid probate will reduce the financial burden and provide confidence, even if unexpected expenses arise. You do not have to face these challenges alone. With the right financial planning or financial planner partner, you can retire in style.
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