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Retirement In Sight: July 2019

July 23, 2019

How Retirement Saving Relates to Retirement Spending
Sometimes an article will present a generic retirement forecast, stating that the average person may need “X” dollars in savings to retire confidently. Stories like these appear every so often on financial websites, and they must be taken with a grain of salt. These articles imply that a pre-retiree household must amass a certain amount of savings or face a financially pressured future – but the forecasts they present may not apply to you.

In reality, saving and investing for retirement is not strictly about reaching a numeric goal, with your investments or your net worth. Just as there is no one-size-fits-all retirement strategy, there is no “average” retirement savings number that applies for every individual or couple. New retirees may want to leave work and enjoy a similar quality of life, and that relates to retirement income and retirement spending. So, a key goal of any retirement strategy is saving enough, so that you can potentially retire with enough income to support your lifestyle. This is why it is crucial to periodically review a retirement strategy, especially after age 50. While a pre-retiree cannot know exactly what they spend once retired, the degree of saving and investing may increase – or decrease – in view of possible future income needs.1

Steps Toward Smooth a Retirement Transition
Retirement is a life event that can be accompanied by others. As you conclude your career or your business, you may also see changes in your goals, finances, social circle, and address. Preparing for the transition, both financially and intellectually, is wise, lest the moment sneak up on you.

A few months to a year beforehand, set aside an hour, a few hours, or even a day to consider the steps that may be part of the transition. With forethought and consideration, these steps may seem unremarkable when they actually occur. For practice, you could try living on approximately the amount of your envisioned retirement income for a month or two. Track your expenses and see how they compare to the forecasts. Are you spending more or less in certain areas? Last, but not least, think about ways to get involved in retirement – ways to spend your time that allow you to interact with others, whether they will be new acquaintances, family, or old friends. You are free to devote yourself to long-held dreams as well as new pursuits, and enriching your life through these avenues can certainly help you to stave off the doldrums.2

On the Bright Side
Research from management consulting services provider Alight Solutions finds that 60% of employers now offer workers online tools and guidance to help them with saving and investing for retirement.3

CITATIONS
1 - forbes.com/sites/kristinmckenna/2019/07/10/debunked-6-myths-about-retirement [7/10/19]
2 - fedsmith.com/2019/07/09/three-steps-avoid-retirement-blues [7/9/19]
3 - usatoday.com/story/money/2019/07/09/retirement-planning-compare-your-401-k-contribution-rates-fees/39660873 [7/9/19]

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Securities and insurance products are offered by Cetera Investment Services LLC (doing insurance business in CA as CFG STC Insurance Agency LLC), member FINRA/SIPC. Advisory services are offered by Cetera Investment Advisers LLC. Neither firm is affiliated with Centier Bank where investment services are offered. Advisory services may only be offered by Investment Adviser Representatives.

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