personal finance

In a unpredicatble financial landscape, with rising inflation and signs of recession, it’s not surprising that 1 in 6 retired Americans are considering a return to work.¹ However, rather than resign yourself to a future where retirement seems like a distant and unachievable dream, there are steps you can take now to ensure you can enjoy your golden years in comfort.

Calculate how much money you’ll need

The primary reason why retirees are seeking work is because they need additional money. Why not utilize our retirement income calculator now to establish what your income needs will be once you stop working? Once you know your projected expenses, you can begin to plan and save accordingly.

Prioritize payments

Focus on paying off as much debt as you can while working – your student loan, mortgage, car payments, etc. While working, save for your children’s college fund via a 529 plan. The less bills you have to worry about in retirement, the further your income will stretch. If your employer offers a retirement plan (such as a 401(k) or 403(b)), start contributing to this as soon as possible to take advantage of the tax-defered benefits they offer.

Consider life insurance and guaranteed annuities

Purchasing a life insurance policy is an investment in your future, allowing a sum of money – which you may be able to draw down – to grow in value over time. You may also benefit from an annual dividend payment if you buy a certain type of policies*. Purchasing a guaranteed income annuity** means you will receive a regular “paycheck” every month during retirement, which can supplement Social Security checks and withdrawals from your savings.

Prepare for extended care

Consider ways to prepare for any extended care events  to ensure your medical bills are manageable should you need residential care or care at home. Some policies combine the best of both long-term care and life insurance benefits.

If you would like help planning your financial future, speak to a New York Life financial professional in your area. 

*Dividends are not guaranteed.
**Guarantees are based upon the claims paying ability of the issuing company.  

1 Are Retirees Quietly Rejoining the Workforce? | Paychex

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