{"id":283,"date":"2019-11-26T14:35:59","date_gmt":"2019-11-26T14:35:59","guid":{"rendered":"http:\/\/ladintax.com\/blog\/2019\/11\/26\/anticipating-retirement-during-changing-times\/"},"modified":"2019-11-26T14:35:59","modified_gmt":"2019-11-26T14:35:59","slug":"anticipating-retirement-during-changing-times","status":"publish","type":"post","link":"http:\/\/ladintax.com\/blog\/2019\/11\/26\/anticipating-retirement-during-changing-times\/","title":{"rendered":"Anticipating Retirement During Changing Times"},"content":{"rendered":"
\n

According to the United Nations, across
\nthe globe, people older than 65 now outnumber children under five for the first
\ntime in history. In 1960, the average woman gave birth to five children in her
\nlifetime; by 2017, that ratio had dropped to 2.4 children per woman. Meanwhile,
\nour life expectancy has increased around the world. In 1960, the average
\nlifespan was just over 52 years of age; in 2017 the life expectancy was 72.1<\/sup><\/p>\n

Today, more than 60 percent of
\nmarried households with children have two income earners.2<\/sup> Yet many
\nstill struggle to make ends meet. That makes it difficult to save for both the
\nexponentially rising cost of college and retirement. With fewer children in
\nsubsequent generations to contribute to the economy and bolster Social Security
\nand Medicare programs, there may be fewer resources available to support the
\nnumber of older adults in the future.3<\/sup><\/p>\n

It\u2019s worth remembering that 2019 began with the longest U.S.
\ngovernment shutdown in history.4<\/sup> On top of that challenging start to
\nthe year, some economists and media pundits have been suggesting we may be
\nheaded for a recession in the future.5<\/sup> If
\nyou\u2019d like to discuss your specific situation, and the potential role of
\ninsurance products in your retirement income strategy, please contact us.<\/p>\n

One strategy for retirement income
\nplanning during uncertain times is to create multiple income streams. For
\nexample, you could purchase an annuity contract for an insurer-guaranteed
\nstream of lifetime income. In one recent report, several Brookings Institution fellows
\nnoted, \u201cFor many people, acquiring an appropriately consumer protective and
\nreasonably priced income annuity with at least a portion of their savings will
\nstill be the best choice for retirement income, and for many others it will
\nplay a key role in a broader post-retirement financial strategy.\u201d6<\/sup> <\/p>\n

One reason an annuity can help
\naddress uncertainty is because none of us knows how long we are going to live. Therefore,
\nit\u2019s difficult to know how much money to save or how much you can afford to
\nspend each year in retirement. An annuity can help address these financial
\nuncertainties because it offers an option for income for life \u2014 as well as the
\nlife of your spouse. It\u2019s important to remember that annuities are insurance
\ncontracts designed for retirement or other long-term needs. They provide
\nguarantees of principal and credited interest, subject to surrender charges.<\/p>\n

As for how much income you\u2019ll need
\nin retirement, be aware that it will likely change as you get older. According
\nto recent research from the National Bureau of Economic Research, people age 70
\nto 75 spend 10.17% of their household income on health care; after age 80, that
\nshare rises to 15.25%. Money spent on domestic services increases from 1.28% to
\n5.22% during those same time periods.7<\/sup> <\/p>\n

Content
\nprepared by Kara Stefan Communications.<\/em><\/strong><\/p>\n

1 \u00a0<\/sup>Fernando Duarte. BBC. April 8, 2019. \u201cWhy
\nthe world now has more grandparents than grandchildren.\u201d https:\/\/www.bbc.com\/worklife\/article\/20190405-why-the-world-now-has-more-grandparents-than-grandchildren<\/a>.
\nAccessed Oct. 18, 2019.<\/p>\n

2 <\/sup>U.S. Bureau of Labor Statistics. April 27, 2017. \u201cEmployment
\nin families with children in 2016.\u201d https:\/\/www.bls.gov\/opub\/ted\/2017\/mobile\/employment-in-families-with-children-in-2016.htm<\/a>. Accessed Oct. 18, 2019.<\/p>\n

3<\/sup> Kathleen Romig, Matt Broaddus and Aviva Aron-Dine.
\nCenter on Budget and Policy Priorities. April 22, 2019. \u201cFinancial Challenges
\nFacing Social Security and Medicare Largely Unchanged From Last Year, Except
\nfor Improvement in Disability Insurance.\u201d https:\/\/www.cbpp.org\/research\/social-security\/financial-challenges-facing-social-security-and-medicare-largely-unchanged<\/a>. Accessed Oct. 31, 2019.<\/p>\n

4 <\/sup>Tobias Salinger. Financial Planning Magazine. Jan. 18,
\n2019. \u201cHow wealth management is stepping up to help during the shutdown.\u201d https:\/\/www.financial-planning.com\/news\/financial-advisors-help-clients-through-government-shutdown<\/a>. Accessed Oct. 18, 2019. <\/p>\n

5<\/sup> Reade Pickert, Yue Qiu and Alexander McIntyre.
\nBloomberg. Nov. 6, 2019. \u201cU.S. Recession Chances Inch Down to 26% Within Next
\n12 Months.\u201d https:\/\/www.bloomberg.com\/graphics\/us-economic-recession-tracker\/<\/a>. Accessed Nov. 7, 2019.<\/p>\n

6 \u00a0<\/sup>David
\nJohn, William Gale, J. Mark Iwry and Aaron Krupkin. Brookings Institution. July
\n2019. \u201cFrom saving to spending: A proposal to convert retirement account
\nbalances into automatic and flexible income.\u201d https:\/\/www.brookings.edu\/wp-content\/uploads\/2019\/07\/ES_201907_JohnGaleIwryKrupkin.pdf<\/a>. Accessed Oct. 18, 2019.<\/p>\n

7 <\/sup>Retirement Income Journal. Oct. 18, 2019. \u201cDifferences
\nin Expenditures between Young and Old Adults.\u201d https:\/\/retirementincomejournal.com\/article\/differences-in-expenditures-between-young-and-old-adults\/<\/a>. Accessed Oct. 18, 2019.<\/p>\n

Guarantees and protections provided by annuities are backed
\nby the financial strength and claims-paying ability of the issuing insurer.<\/em><\/p>\n

We are an independent firm helping individuals create retirement
\nstrategies using a variety of insurance products to custom suit their needs and
\nobjectives. This material is intended to provide general information to help
\nyou understand basic retirement income strategies and should not be construed
\nas financial advice. <\/em><\/p>\n

The information contained in this material is believed to be reliable,
\nbut accuracy and completeness cannot be guaranteed; it is not intended to be
\nused as the sole basis for financial decisions. If you are unable to access any
\nof the news articles and sources through the links provided in this text,
\nplease contact us to request a copy of the desired reference.<\/em><\/p>\n

1002516B<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

According to the United Nations, across the globe, people older than 65 now outnumber children under five for the first time in history. In 1960, the average woman gave birth to five children in her lifetime; by 2017, that ratio had dropped to 2.4 children per woman. Meanwhile, our life expectancy has increased around the…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[],"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/283"}],"collection":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/comments?post=283"}],"version-history":[{"count":0,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/283\/revisions"}],"wp:attachment":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/media?parent=283"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/categories?post=283"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/tags?post=283"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}