Retirement’s New Normal

It’s not all doom and gloom. The economic environment is tough, but with some preparation, you could still retire.

The golden age of retirement planning is slowly but surely coming to an end. For nearly the past 50 years, workers could count on a combination of Social Security, company defined benefit pension plans or defined contribution plans, and Medicare to meet their income and medical needs when they stopped working.

Today, however, Americans must save more during their working years, pay more out of pocket for medical and long-term care, and, if they don’t plan adequately, may even depend on their children for financial support during their retirement years. The recent recession has made saving even more difficult, and many Americans are delaying retirement to stockpile as much money for retirement as they can.

While the situation sounds dire, there are reasons to feel positive about the future – and, there are steps you can take today to make sure you have what you need for retirement.

The good news is that Americans today are living longer, healthier lives than ever before. That means more years to enjoy life after work, more time to spend with grandchildren and, a greater chance that you’ll be more active than your parents were in your golden years.

The key to enjoying those years? Preparation. Take some time now to plan ahead so that you can rest easy knowing that you’ll have the resources you need to live well.

Make a plan. It’s easier than you think

Today’s economic environment is turbulent and can seem scary. But with a well-mapped plan, you can weather the ups and downs much better – and with far less anxiety -- than you think. Here are some tips:

1. Consider working with a professional. Yes, you can do it yourself, but having someone you can turn to is a huge benefit. A New York Life Agent can answer your questions, help you get organized, and keep you on track to achieve your financial goals.

2. Know what you have today. Start with what you have, then figure out what you’ll need for retirement. Life changes quickly – if you worked out a plan a few years ago, it may need to be updated.

3. Understand your options. 401(k) – check. company pension plan – check. Great – you’re on your way. But what else do you need? Life insurance and annuities are key components of healthy retirement plans. So are individual investments in taxable investment accounts and in retirement plans such as IRAs. Don’t forget long-term care insurance. There is a lot out there. We can help you find insurance and financial products that are most appropriate for you.

4. Bear or Bull? Understand the economy. Understanding where the economy is headed can help you plan for the future. Qualified financial professionals can help make sense of it all.

5. Don’t wait to begin. It can be daunting to think about your retirement, especially when you’re involved in working and living today. One thing to keep in mind, though—it doesn’t pay to wait. Any step – small or large – you can make today to help plan your future is a step in the right direction.