Although retirement planning should begin long before
you're old enough to retire, the need for clear and
understandable planning information continues even after
you've entered the golden years of your life.
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Retirement planning is an ongoing effort |
Things change — your health, the status of your
financial resources and a host of other factors that can
affect financial security. Regular evaluation of your retirement
resources, especially those that fluctuate with the stock market, will help
ensure that your retirement income continues to meet your needs.
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Get the facts |
| These facts underscore the importance of ongoing
retirement planning: |
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According to the National Center for Health Statistics, the life expectancy for an American born in 1900 was 47.3 years; an American born in 2000 is expected to live 77 years. Obviously this extra longevity needs to be considered when planning for retirement.
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Social Security provides one-third or less of our retirement income. According to the Social Security Administration, the average benefit payable as of January 2004 is $903 per month.
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- Long-term nursing home care can deplete assets quickly. According to an Aug. 4, 2003 article provided through Business Wire, a year's stay in a nursing home now averages more than $57,000 and can exceed $166,000 annually in some parts of the country.
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A 2003 survey by the Employee Benefit Research Institute showed that 40% of those who are retired did so early — of those half retired before they planned because of poor health, job situations or disability.
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- Many companies are changing their pension plans and retiree benefit packages to save money.
- Although currently low, inflation still plays a crucial role in retirement planning.
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Change is the constant of the future |
We already know that medical science is helping us live
longer. Although this is good news, a potentially longer life
expectancy means that the financial resources you set aside for
retirement will have to stretch over a longer time and any
possible episodes of poor health. Increasing costs of goods and
services, limited Social Security benefits and a potentially lower income should
stimulate an interest in making changes that will benefit you
financially in the short or long term. If you think your resources
aren't going to meet your needs, it's time to make some changes.
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Source: National Center for Health Statistics, National Vital Statistics System.
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Source: Social Security Administration, www.socialsecurity.gov.
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Source: 2003 Retirement Confidence Survey, Employee Benefit Research Institute,
American Savings Education Council and Mathew Greenwald & Associates.
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