For most of our clients, retirement is the largest goal to be funded.
The number of Social Security recipients over the age of 90 is approaching 2 million people. We feel it is prudent for most to plan on a 30-year retirement.
Lack of pension
Each year, more organizations are dropping their pensions. Individuals have more of the responsibility to create a pool of reliable income to maintain their lifestyles.
Increasing longevity leads to increased health care costs. Given the state of Medicare and health care in general, we feel that these costs will continue to exceed the rate of inflation as they have for the past 20 years.
In the short term, the impact of inflation can be modest. But over a 30-year retirement, a 3% rate of inflation will erode the purchasing power of a $1 by 60%.
Decreases in future benefits
Many government pension plans are cutting back benefits; those in the midst of their careers wonder what will ultimately happen with Social Security.