Saving for retirement is not the same as what your parents and grandparents did. It has become harder in several ways, but we’ll explain what you can do to prepare.
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On today’s episode, we’re talking about a story on Fox Business, “Saving for retirement is getting harder. Here’s what to do about it.” When it comes to actual retirement planning and what’s available to us today to be able to retirement plan, things have really changed.
Getting “back in the day” stories might not actually help when it comes to retirement planning for those that have not retired yet or are looking to retire or just retired. The whole retirement scene has really changed.
What your parents and grandparents did to prepare for retirement, that whole scene has changed. A lot of employers used to offer a pension, which was a guaranteed source of income when they retired, and some also offered a cost of living adjustment.
They had a guaranteed check coming in every month. They also have Social Security, which had a lot stronger base for our grandparents’ generation.
A majority of our clients, about 80%, don’t have pensions. Pensions can be much risker to employers than 401k payments, and many employers are looking to buy out their employees’ pensions and pay out a lump sum payment.
Social Security has also changed over time. There are articles out there about when Social Security will run out or be reduced, but we don’t believe it’s going to go away anytime soon.
Listen to the entire episode or click on the timestamps below to skip ahead to a particular question.
[4:44] – Fox Business story
[6:55] – Grandparents and parents
[9:54] – Pensions
[12:11] – Social Security
[16:00] – Retirement savings
[17:40] – Other reasons
[21:07] – Solutions
[25:42] – Investments
[27:58] – Without a plan
[29:19] – Long-term care plan
Thanks for checking out this episode. We’ll talk to you again soon.
“What your parents and grandparents did to prepare for retirement, that whole scene has changed.”