Managing Your Finances, Planning For Retirement

While retirement can be an exciting time to enjoy the things you have always wanted to do, it can also be a complicated time for people. There is a lot of planning that goes into guaranteeing financial security. How do you know that you covered all your bases so you can relax and live life to the fullest?

Laying the financial groundwork now ensures a smooth transition into retirement. Here are the biggest financial worries about retirement we regularly hear from customers and how to plan for them.

Paying for Healthcare
Health care costs are a top concern for most Americans, but particularly those entering retirement and about to lose the benefits provided by an employer. Unanticipated medical expenses can derail years of retirement preparation, which is why it is essential to plan now for future health care costs.

Did you know that a Health Savings Account (HSA) can be a powerful savings tool for retirement when you have a high deductible healthcare plan? If you’re preparing for retirement and typically max out contributions to your IRA and 401(k), an HSA can offer an additional way to put aside money for later. READ MORE

Saving Enough Money
In 1940, the life expectancy of a 65-year-old was under 14 years; it is just over 20 years today, according to the Social Security Administration. So, it makes sense that many worry they will outlive their savings. You can reduce this retirement anxiety by estimating how much you need to save to cover a long retirement.

Find out if you’re on track with our Personal Retirement Calculator and be sure to plan for more than 20 years of assets. Then, look for ways to boost your savings by taking advantage of catch-up contributions to retirement accounts and adjusting your asset allocation to meet your circumstances.

Maintaining an Income Stream
Americans not only worry about sufficient retirement savings but are also concerned that Social Security income will not be available long-term or won’t cover enough of the gap in their expenses. When it comes to income planning in retirement, keep in mind that working for even just a few more years may help you avoid drawing income from Social Security and your savings. You can also take advantage of available pensions and benefits. In 2018, 24% of men and about 16% of women ages 65 and older were still in the labor force. These levels are projected to rise by 2026, to 26% for men and 18% for women^*.

*U.S. Census Bureau, Current Population Survey; and U.S. Bureau of Labor Statistics, Employment Projections Program as published by Population Reference Bureau’s Population Bulletin.

Having Too Much Debt
According to a study published on Experian.com, the average Baby Boomer (age 56-74) carries $96,984 in personal debt. There are different ways to tackle debt, but the critical step is to address debt now before it becomes a drain on your retirement savings later. Use our Debt Payoff Calculator to figure out how you can accelerate your debt payoff.

Ready to Make a Retirement Plan? 
Contact our Wealth Management Department at 713-595-7432
or email us to schedule an appointment.

*Consult your tax advisor for how an HSA or FSA might benefit you, depending on your particular tax situation. 

**Notice: 
Wealth Management Department Investments include non-deposit investment products which are:

 - Not bank deposits
 - Not FDIC insured 
 - Not insured by any federal government agency 
 - Not guaranteed by the bank 
 - May decrease in value