Living in retirement is a dynamic and ever-evolving journey requiring careful planning and proactive management. Your retirement plan should not be a “set it and forget it” strategy. In fact, it’s important to review your financial plan as often in retirement as you did pre-retirement.
Mercer Advisors helps you manage the complexities of living in retirement with the confidence you’ve earned. We understand the concerns that many retirees have, such as outliving your savings, managing healthcare costs, navigating options for Medicare and Social Security, setting up charitable giving, or even finding fulfillment in a new stage of your life. We are here to support and guide you during this new beginning.
I work closely with my clients to help ensure that they feel confident and safe.
It Pays to Wait When it Comes to Social Security Benefits
Many factors can influence Social Security retirement benefits and starting age may be the most significant. The below chart illustrates that waiting until after age 62 to begin benefits can have positive impact on a couple’s monthly Social Security income.
For illustrative purposes only. Benefit projections above are based on the estimated Primary Insurance Amount at Full Retirement Age that were provided by a client (names have been changed). Benefit amounts may change based on additional earnings or changes in earnings that can impact the Primary Insurance Amount. If you are already receiving benefits, your actual benefit payments may differ from the estimates above based on when you began collecting. All benefits levels are expressed in today’s dollars. All payments will increase with Cost of Living Adjustments (COLAs).
Living Well in Retirement – Making the Most of a New Life Chapter
A ship’s captain is constantly looking at the route of the journey throughout the voyage and, if needed, the path to the destination may change. Living in retirement is no different. Mercer Advisors will work with you to review your financial plan every year to help ensure that you have the highest chance of achieving success.
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Retirement is a significant milestone. For many, it’s a time to embrace the rewards of a lifetime of hard work and commitment to a plan. However, our experience has taught us that as people start this new chapter of their lives, they face a myriad of financial considerations and emotional challenges that require an understanding, compassionate, and experienced wealth advisor.
Financial considerations play an understandably significant role for people living in retirement. Our goal is to help every retiree live their desired lifestyle. However, it’s important to remember that living in retirement is not about setting a plan then sitting back and watching it unfold. We review your financial plan annually for the same reason that you see a doctor every year – so we have the highest probably of catching something and fixing it before it becomes an issue. Four financial considerations we pay special attention to are: retirement income, tax and legacy planning, retirement estate planning, and healthcare planning.
Income planning
Retirees want to feel secure in knowing that they have enough savings to live comfortably in retirement. However, “having enough” is a complicated question that depends on factors such as inflation, life expectancy, social security benefits, and unexpected expenses. We work with you to create a plan tailored to your specific needs to help achieve your goals.
Tax and legacy planning
While you may not have income from employment, retirees are often subject to taxes on retirement income, including distributions from retirement accounts and investment income. Moreover, retirees want to maximize what their heirs receive versus what goes to the government. There are many complexities that we work through to create a personalized plan that is right for you and your family.
Retirement estate planning
This is an important aspect of living in retirement. Ensuring that your assets are distributed as you wanted them to be and that your loved ones are provided for in the event of your passing. Proactively addressing estate matters like wills, trusts, and powers of attorney, can help provide financial security when you are living in retirement.
Healthcare planning
A critical part of living in retirement is healthcare planning. It’s no secret that healthcare costs increase as people age and unexpected medical expenses can dramatically impact retirement savings. Working together, we’ll create a plan that optimizes all public and private benefits available to you, so that you will have the peace of mind that you have worked hard for.
Most people living in retirement just want an answer to the question, “Am I going to be alright?” At Mercer Advisors, we weed through the noise and help you focus on the important things. Working together, we’ll create a strategy for maximizing all public and private benefits available to you.
