Retirement Security: Ensuring Today’s Workers are Secure in Their Future

August 7, 2020

The nation’s retirement system is constantly changing. Often, not for the better. There are fundamental changes that have made it especially hard for Americans to retire. Social Security is not what it used to be, and 401K savings aren’t as much of a priority. Financial advisors must start creating new avenues for savings for their clients. This will ensure that they have security when heading into their retirement. As well as ensure that they can retire at the right time.

Here are three tips to ensure that today’s workers are secure in their retirement future:

1. Create new sources of retirement income.

As mentioned before, Social Security is not what it used to be. It is certainly not enough to sustain retirement on its own. Retirees have to look for other creative ways to ensure that they are getting a steady source of income. These solutions need to be both smart and long-term.

One way is through investments. Whether it’s property or something else, having a successful investment will effectively supplement a retirement income. It is ideal to make these investments prior to actual retirement if at all possible. That way any errors or kinks can be ruled out before an individual is completely dependent on the income. Another effective way to ensure income during retirement is by remaining employed, although this is not always preferrable. Even finding a part-time job can be a big help. Although it isn’t ideal, it can be a great way to continue to saving after retirement.

2. Have a solid plan in place prior to retirement.

The more time there is to plan for retirement, the better. While we understand that not everyone has that luxury, it’s important to try and plan as much as possible. Finding a financial advisor that understands this is a great first step. Reconfiguring your 401K savings and investments so that it sets up a successful retirement will create security and reassurance.

A plan includes setting up a source of income, a budget, and preparation for future needs. These needs will include health expenses. People often underestimate their health needs during retirement and end up in a bind when it’s time to pay bills. Getting ahead on this and planning accordingly is the best way to make sure the client is thoroughly prepared. When it comes to being secure in retirement, planning is everything.

3. Reconcile debt before retirement.

It may seem nearly impossible, but, reconciling debt before stepping into retirement should be a goal for every financial advisor and their clients. Not having to worry about extra payments while retired will create financial security. The first step will be understanding what debts are present and then deciding on a plan to get them paid off. A best practice is starting with your smallest debt and paying it off, and, and then moving forward from there. This can be referred to as a “debt snowball”. Stepping into retirement debt-free, or even nearly debt-free will bring a great sense of security.

As a financial advisor or IRA custodian, it is your responsibility is to ensure your clients’ security in their retirement. While it can be complicated and difficult to know where to start, it is possible to set your clients up for success. Through creating sources of income, setting a plan in place, and reconciling their debts, you can start to put your client on a path towards retirement security.

It is possible to rewrite the future of retirement in America. While the economy continues to change, we can continue to innovate and create secure retirements for clients. Visit RITA for more information.