Preparing for Retirement

Welcome to today’s CT Buzz, I’m Rachel Lutzker. Many people assume that they’ll be spending less once they’re retired than what they’ve been spending pre-retirement. They’ve been saving diligently with the expectation that they should have enough to retire comfortably, but this isn’t always the case. Now, according to a recent survey, Ben Fuchs, founder of Fuchs Financial, is here to talk about how they can help you with realistic planning to put you in the best position for retirement. In addition to being a Certified Financial Planner, Ben is also a Certified Private Wealth Advisor professional. The annual spending in retirement survey, which looks at Americans ages 62 to 75 by the Employee Benefit Research Institute, found the following. Thirty-one percent of retirees said that their spending is much higher or a little higher than they can afford, up from 27% in 2022 and 17% in 2020. Looking ahead to their retirement, half of the retirees said they saved less than what was needed. Overall, only 59% of retirees said they have three months of emergency savings, down from 69% in 2022. These numbers are moving in the wrong direction, and if we want to understand why, we have to consider inflation. We’ve seen the cost of goods go up while wages haven’t kept pace. When living on a fixed income, especially in retirement, it becomes critical to pay attention to your savings. The reality is that a lot of people can’t do the same things they were able to do four or five years ago and have to make adjustments now. Proper planning can help mitigate these factors by putting your money in the right positions, making sure it grows at the rate it should, and putting you in a better place for retirement. You also have to plan for unexpected expenses. Remember when you were budgeting and a tire or home repair popped up unexpectedly? It’s the same in retirement, except these expenses can be bigger. Kids moving back home or holiday expenses for grandchildren are things that can happen, and you want to be prepared so one little thing doesn’t derail your retirement. Four key areas can help keep you on track: understand where your money will come from in retirement, divide your money into safe, income, and growth buckets, balance risk appropriately, and decide what your priorities are for retirement. Scenario-based planning helps you see how your retirement is impacted by different factors in the future. Obviously, these steps require planning, and that’s where Fuchs Financial comes in. You can visit taxesandincome.com to set up a complimentary, no-obligation consultation. Sit down with an adviser, get a second opinion, and make sure you’re on the right track. Ben and his team can help set your financial goals, provide advice on how to achieve them, and follow up to ensure your plan adjusts as your circumstances or goals change. Retirement isn’t set in stone, but having a plan allows you to fully enjoy the retirement you’ve worked hard for.