The Shifting Landscape of Retirement

Mostly gone are the old days when employees could rely on the income of pension plans to meet their retirement desires.  Instead, many baby boomers find themselves in a different world of defined contribution plans like 401(k) accounts. 

This shift has left many near-retirees feeling like they're sailing without a clear guide and unsure of how to chart their course to a confident retirement as tax strategies, withdrawals and investments are needed more often.  Financial stress can be like a slow leak in a boat, gradually eroding workplace productivity and employee well-being. However, there's a silver lining to this cloud. Near-retirees are often eager to learn about financial strategies that can help them, but they hear all sorts of different strategies and are unsure who they trust with their hard-earned savings.  We realize it’s difficult and hard.

Let's dive into 3 key topics that are sure to resonate with near-retirees:

1. Turbocharging Savings in the Final Stretch

It's never too late to boost retirement savings, and near-retirees have some powerful tools at their disposal. Catch-up contributions are like a nitro boost for retirement savings if you have available funds. These catch-up limits allow people to put away extra amounts of money in tax-advantaged ways to help save for retirement.

2. The Swiss Army Knife of Savings: Health Savings Accounts (HSAs)

Healthcare costs can be a heavy anchor weighing down retirement plans. Enter the Health Savings Account (HSA) – a versatile tool that's often overlooked. HSAs offer a triple tax advantage when within the rules.

1. Contributions are tax-deductible

2. Earnings grow tax-free

3. Withdrawals for qualified medical expenses are tax-free

After age 65, HSA funds can also be used for any purpose without penalty, although non-medical withdrawals may be taxable. HSA’s are a great tax strategy tool.  It's like having a get out of jail free card in your retirement toolbox – versatile and incredibly useful.

3. Demystifying Social Security and Medicare

Nearly half of employees want their employers to shed light on Social Security and Medicare benefits. These programs can seem as complex as a Rubik's cube because there are a lot of moving parts, but understanding the fundamentals is crucial for retirement planning. It's important to note that the Social Security Trust Fund reserves are projected to be depleted by 2034, potentially leading to reduced benefits.  We never know though as changes should be made.  This underscores the importance of exploring other assets sources those to supplement Social Security.

Imagine a world where financial literacy is as fundamental as reading or math. What if understanding the basics of finances was taught in schools and throughout your working years? This vision could transform our nation’s economic landscape for the better.

As we navigate the "Great Retirement" era, it's clear that financial education and support are more crucial than ever.  Many believe we have a shortage of educated, trained, and good hearted financial planners

 Disclosure:

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material