New York Life | July 26, 2023
Already have a plan in place? Consider taking these actions to refine it.
Congratulations on feeling confident about your retirement preparations!
According to New York Life's latest Wealth Watch survey 68% of people feel either very confident or somewhat confident their retirement savings will last through their whole retirement. But despite this confidence, 42% of pre-retirees agree they are managing their retirement preparation alone.
As you continue to refine your retirement plan, consider the below five tips to strengthen your retirement preparations and enjoy a fulfilling post-career life.
1. Focus on your income sources
While building cash savings is important, it’s just one piece of the retirement puzzle. Your lifestyle will be driven not by your savings grand total, but by the income sources available during retirement. Create a detailed retirement income strategy encompassing savings, investment returns, Social Security benefits, pensions, annuities, and other income streams.
According to New York Life's latest Wealth Watch survey, 60% of people plan to support themselves in retirement using Social Security, 47% plan on using personal savings, and 36% plan on generating passive income or designing alternative income streams.
2. Reduce debt for increased financial flexibility
If you have high-interest debt, focus on paying it down by establishing a debt repayment plan. By minimizing monthly obligations and freeing up more income, you'll have the freedom to pursue meaningful experiences and activities in retirement.
According to New York Life's most recent Wealth Watch survey, of the 42% of adults who currently have credit card debt, 35% said their debt has increased in the last year by an average of $4,157, for an average total owed of $8,431.
3. Seek professional guidance
Even when feeling confident about retirement planning, seeking the guidance of a trusted financial professional can be invaluable. Consult with a financial professional who can assess your current financial situation, keep you on track with realistic goals, and support your existing retirement roadmap. Professional guidance can provide clarity and confidence as you work towards a secure retirement.
4. Safeguard your retirement lifestyle from health events
It’s crucial to protect your retirement lifestyle from health-related challenges. Consider exploring options like long-term care insurance or health savings accounts to safeguard your assets and those of loved ones. These solutions provide financial assistance in the face of long-term care needs or medical expenses, helping to ensure your approach to retirement remains intact.
5. Leave a lasting legacy with life insurance
Life insurance can play a valuable role in leaving a meaningful legacy, as it allows you to support your loved ones’ financial well-being and contribute to other goals, like giving back to your community. Whether you want to support charitable causes, cover estate taxes, or provide for loved ones, it’s important to review your life insurance coverage to align with your desires for a lasting impact.
“We are in a turbulent economic environment,” says Suzanne Schmitt, Head of Financial Wellness at New York Life. “As traditional retirement savings and income vehicles come under pressure or become unavailable, people are feeling anxious and many also feel unprepared.”
Be proud of the progress you’ve made thus far. The considerations above will further solidify your retirement strategy and provide added peace of mind. Stay engaged with a trusted financial professional to receive personalized guidance and ensure your retirement goals remain on track.
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