Why Retirement Income Planning is More Important Than Ever
You’ve likely heard the statistics1:
- There are about 50 million Americans currently in retirement
- Approximately 14 million have retired within the last five years
- 4 million Americans are retiring annually
- 1 in 5 Americans will be retired by 2030
The impact of this is the number of people concerned about retirement – and their ability to sustain income through the duration of retirement – is growing dramatically.
Then there are other macro factors changing the landscape of retirement, and not for the better.
- Increasing lifespans translate to a need for retirement savings to last longer
- Guaranteed, lifetime income streams from pensions that people historically counted on are on the decline
- Significant pressure is being placed on our Social Security and Medicare systems, which were not designed to support people through increasing lifespans
This is creating a lot of uncertainty for a very large group of people. It’s creating an environment where people are worried and scared as they enter what is supposed to be the most exciting and relaxing period of their lives. Unfortunately, only 2 in 10 feel confident that they will have enough money to live comfortably in retirement, and 3 in 10 report that preparing for retirement causes them to feel mentally or emotionally stressed.2
Taken all together, this is why retirement income planning is more important than ever. We developed JourneyGuide™ to help you tackle this problem.
JourneyGuide is a new retirement planning solution that provides answers to people’s key questions about retirement, such as, “What income can I have in retirement, given my current path, and how does that compare to my goal?”
After establishing this “baseline,” JourneyGuide provides recommendations on how to improve retirement outcomes – not by asking people to save more, retire later, or live on less. Those are the “solutions” that most planning software packages support. Instead, JourneyGuide allows clients to pull levers, such as the relocation of the right amount of assets to lifetime, guaranteed income streams. While this may sound simple, and JourneyGuide makes it appear that way, incredible innovation and rigor has been required to “get to the answers” quickly and accurately.
In the weeks ahead, I’ll be sharing more about JourneyGuide and how it can help you move your clients from uncertainty about retirement to confidence in their future.
1U.S. Census Bureau, https://www.census.gov/people/laborforce/publications/Working-Beyond-Retirement-Age.pdf
2Employee Benefit Research Institute, 2017 Retirement Confidence Survey: https://www.ebri.org/surveys/rcs/2017/