Retirement savings aren’t a sure thing. It is almost impossible to predict how markets will perform over time.
Yes, markets generally run in cycles, but global events are unpredictable. The best we can do is base our future projections on the history of the markets and what analysts recommend. A perfect example is the last four years when we experienced a pandemic, hyperinflation, war, and super economies at odds. The previous few years witnessed significant damage to personal finance and money.
A recent survey shows that Americans used to think that $1 million saved in a pension plan was the retirement ideal. They now believe they need $1.9 million to be financially secure at retirement. While each person’s retirement needs are unique and require help through individual planning with a financial advisor, it is a bit of an eye-opener for retirement savers.
Basically, retirement capital has not grown as well as what was expected. Many pre-retirees are now concerned about their shrinking portfolios and the impact it would have on their retirement lifestyle. This has led to professionals rethinking their retirement plans and increasing their retirement goals to make up for the losses. Even younger professionals see the need for increased retirement savings or alternative supplements.
It’s not all doom and gloom for your money. There are still opportunities to make up the portfolio losses as markets rebound.
Those with time to save can make all the difference by increasing contributions and ensuring their investments are diversified.
For those nearing retirement, don’t forget that state pensions are an excellent supplemental income to help bridge the gap. Alternatively, you might consider renting part of your home or starting a small part-time business for extra income.
If you are worried about how your retirement income may have been affected by the market volatility over the last year or two, then chat with your financial advisor to review your financial portfolio and make any adjustments to get you back on track with your retirement plan.
Please note the above is for educational purposes only and does not constitute advice. You should always contact your advisor for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken as a result of reading the above.