RETIREMENT PLANNING

Here at Gulf Coast, we strive to make retirement simple. We focus less on strategies that cost you fees and more on finding solutions to your retirement problems. Whether that’s developing a pension strategy or finding the right product for growth. We take into consideration every angle of retirement as we create the best and most comprehensive plan for you and your family.

Overall, a larger proportion of Americans are worried about their retirement finances now than in the final months of the Great Recession in 2009. The share of adults saying they are “not too” or “not at all” confident that they will have enough income and assets to last through their retirement years has grown from 25% in 2009 to 38% in the latest Pew Research poll. (source: Nationally representative survey conducted by the Pew Research Center). It is extremely critical to begin a conversation about retirement now before it’s too late.

Retirement planning today has taken on many new dimensions that never had to be considered by earlier generations. For one, people are living longer. A person who turns 65 today could be expected to live as many as 20 years in retirement (or more!) as compared to a retiree in 1950 who lived, on average, an additional 15 years. Longer life spans have created a number of new issues that need to be taken into consideration when planning for retirement.

There actually is a lifetime after retirement and the need to be able to provide for a steady stream of income that cannot be outlived is more important than ever. With the prospect of paying for retirement needs for as many as 20 years, retirees need to be concerned with maintaining their cost-of-living.

Longer life spans can also translate into more health issues that arise in the
process of aging. The federal government provides a safety net in the form of Medicare, however, it may not provide the coverage needed especially in
chronic illness cases. Planning for long-term care, in the event of a serious
disability or chronic illness, is becoming a key element of retirement plans
today.

 

Planning for the transfer of assets at death is a critical element of retirement planning especially if there are survivors who are dependent upon the assets for their financial security. Planning for estate transfer can be as simple as drafting a will, which is essential to ensure that assets are transferred according to the wishes of the decedent. Larger estates may be confronted with settlement costs and sizable death taxes which could force liquidation if the proper planning is not done. 

 

Retirees who have prepared for their retirement usually rely upon three main sources of income: Social Security, individual or employer-sponsored qualified retirement plans, and their own savings or investments. A retirement plan will emphasize qualified plans and personal savings as the primary sources with Social Security as a safety net for steady income.

 

Social Security was established in the 1930’s as a safety net for people who,
after paying into the system from their earnings, could rely upon a steady
stream of income for the rest of their lives. The age of retirement, when the
income benefit starts was, originally, age 65 which was referred to as the
“normal retirement age”. Now, for a person born after 1937, the normal
retirement age is being increased gradually until it reaches age 67 for all
people born in 1960 and beyond. The amount paid in benefits is based upon
the earnings of an individual while working. If a person wanted to continue to work and delay receiving benefits, they could do so build up a larger benefit. Conversely, early retirement benefits are available, at a reduced level, as early as age 62.