Latest News / Ask a Trust Officer: Delaying Retirement
Ask a Trust Officer: Delaying Retirement
August 11, 2022
DEAR TRUST OFFICER:
I was planning to retire later this year, but I’m having second thoughts. My 401(k) has gone down in value just when the cost of living is going up at rates I haven’t seen since I entered the workforce after college. What do you think? —RECONSIDERING THE RETIREMENT DATE
You have plenty of company. According to a CNBC report of a survey conducted in April of this year, 25% of Americans are now expecting to delay their retirements. Some 36% have reported that they are already reducing savings to have enough money to meet monthly expenses. More than 40% say they are reducing spending in grocery stores and on restaurants already, but still more food inflation is expected by many observers later this year.
You are caught between a rock and a hard place. Your retirement expenses most likely will be higher, perhaps much higher, than you have projected, while the resources you have to meet them probably won’t create as large an income stream as you were hoping. It’s true that some routine expenses are reduced during retirement, such as the costs of commuting and business clothing. But other expenses may go up during retirement, for travel and entertainment in the early years and health care later on.
It is prudent to reevaluate your retirement start date now, if you have the flexibility to do so. It gives you more time to build a larger base of retirement capital. Continuing to work may increase the Social Security benefits to which you become entitled, depending upon your age. Whatever you decide, it is generally recommended that most people should enroll in Medicare when they turn 65, even if they keep working.
Still, money is but one consideration among many in choosing the appropriate retirement start date. In that same survey some 55% of respondents said their bankers were crucial in helping them to meet their financial goals. If you would like advice tailored to your unique circumstances, we invite you to make an appointment with one of our officers.
Do you have a question concerning wealth management or trusts? Please contact Centier Financial Partners at 219-755-6110. We would love the opportunity to serve your needs.
© 2022 M.A. Co. All rights reserved.
Check the background of this investment professional on FINRA’s BrokerCheck
Located at: 600 E 84th Avenue Merrillville, IN 46410
Phone: (844) 755-6600
Securities and insurance products are offered through Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered through Cetera Investment Advisers LLC. Neither firm is affiliated with the financial institution where investment services are offered. Individuals affiliated with this broker/dealer firm are either Registered Representatives who offer only brokerage services and receive transaction-based compensation (commissions), Investment Adviser Representatives who offer only investment advisory services and receive fees based on assets, or both Registered Representatives and Investment Adviser Representatives, who can offer both types of services.
These products and services are being offered through Cetera Investment Services LLC or its affiliates, which are separate entities from, and not affiliates of, Centier Bank or Centier Investments. Securities and insurance products offered by Cetera Investments are: *Not FDIC/NCUSIF insured *May lose value *Not financial institution guaranteed *Not a deposit *Not insured by any federal government agency.
This site is published for residents of the United States only. Registered Representatives of Cetera Investment Services LLC may only conduct business with residents of the states and/or jurisdictions in which they are properly registered. Not all of the products and services referenced on this site may be available in every state and through every advisor listed. For additional information please contact the advisor(s) listed on the site, visit the Cetera Investment Services LLC site at www.ceterainvestmentservices.com