The need to create a retirement preparation checklist has become more vital than ever. Statistics show that 54% of American households don’t have any dedicated retirement savings. Your retirement plan consultant in Fresno CA, knows most people dream about their golden years filled with comfort and leisure. The reality paints a different picture – an average American thinks they need $1.26 million to retire comfortably.
The numbers tell an interesting story. Half of Americans haven’t even calculated how much they need to save for retirement. Retirees might spend two to three decades or more in retirement. They could face around $174,500 in out-of-pocket healthcare expenses. These facts make proper planning a must. The gap between expectations and reality becomes clear when you look at retirement age statistics.
Know Your Retirement Number and Savings Goals
Your retirement preparation starts with calculating how much money you’ll need to save. Financial experts say you’ll need 70-90% of your current income to keep your lifestyle after you stop working. Social Security only covers about 40% of what you made before retirement, which makes your personal savings crucial.
The Rule of 25 offers the quickest way to calculate your target savings – multiply your expected yearly retirement expenses by 25. To name just one example, see someone planning to spend $40,000 each year in retirement would need about $1 million saved up. The 4% rule works similarly – you can take out 4% of your retirement savings in the first year and adjust that amount for inflation later.
The 80% rule gives you another way to look at it. This rule suggests you’ll need 80% of your pre-retirement income. So, if you make $100,000 a year now, you should plan for $80,000 yearly in retirement.
Build a Financial and Healthcare Safety Net
Diversification is the life-blood of any solid retirement preparation checklist. A well-diversified portfolio spreads investments in different asset classes. This reduces overall risk and maintains growth potential. Your asset allocation should match your risk tolerance, time horizon, and financial goals – at least that’s what most financial advisors recommend.
Healthcare planning needs just as much attention as investment diversification. A person retiring at 65 in 2025 should expect healthcare and medical expenses around $172,500 throughout retirement. Medicare becomes available at 65, but it doesn’t cover all expenses. Many retirees buy Medigap policies to help with their deductibles, copayments, and coinsurance.
Health Savings Accounts (HSAs) give you a powerful triple tax advantage. Your contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses stay tax-free. The 2025 contribution limits are $4,300 for individual coverage and $8,550 for family coverage. You get an extra $1,000 if you’re 55 or older.
Prepare for Lifestyle, Social, and Emotional Shifts
Your retirement preparation checklist should focus on emotional well-being as much as financial planning. About 25% of older adults face social isolation, which poses health risks equal to smoking 15 cigarettes daily.
Retirement eliminates workplace social networks that gave structure and identity for decades. Retirees often experience a “honeymoon phase” but feel disappointed once their original activities end. Here’s what you can do:
Maintain meaningful connections through regular social interactions. Join clubs, volunteer, or take classes—these activities give structure and help curb isolation.
Conclusion
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”
Other Related Articles on retirement planning
Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
Marketing by Fresno SEO Company
The post The Essential Retirement Preparation Checklist You Can’t Ignore in 2025 appeared first on Soutas Financial.
source https://soutas.com/the-essential-retirement-preparation-checklist-you-cant-ignore-in-2025/
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.