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Retirement and Debt

Core Facts

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Monday, April 25, 2022

Retirement is something that should be enjoyed, not dreaded. As you age you find out that there are certain things that are more important than others. Planning on what you are going to have to spend in your retirement years is an important part of building your confidence as you approach later life.

As the old saying goes, “When you fail to plan, you plan to fail.”

David Beckerman, Senior Vice President of David Lerner Associates helps people plan for their future with personalized, complimentary consultations and says, “Being prepared means you have to plan. Planning your future sensibly using a middle ground of investing rather than high-risk opportunities over time, in my opinion, is a better option. Planning for retirement is a big commitment but it is a necessary one. Make informed choices and adjust your plan as time goes on by consulting with a trusted advisor who can help you to navigate through any challenges.”

If you know your annual income while you're still working, you can expect to spend between 55 percent and 80 percent of that every year throughout retirement, depending on your income, retirement lifestyle, and health care costs. If you plan an active lifestyle in retirement, expect to increase your annual retirement budget by about 6 percentage points compared with a less active lifestyle. Expect 15 percent of your living expenses to be related to health care expenses after you retire, year in and year out. As you near retirement, consider working with an advisor to fine-tune your budget and retirement income plan.

Luckily more than half of us have an 80 percent or better chance of reaching a viable retirement goal according to our predicted spending. To save enough for your predicted retirement spending goals means that you feel confident enough that you have enough financial assets to meet the amount you have predicted you will need. This means you have to keep saving over a long period of time. Unfortunately, one in five Americas has a less than 50 percent chance of meeting their goals. That’s worse than a coin toss when it comes to odds. 

If you are planning on retiring you will need to take into account the amount you are spending every month and then do the math and figure out how long you will have to keep up every single dime of those expenses. Certain areas of the United States are less expensive than others and some have exorbitant outgoing expenditures for certain services. For example, the research found that the highest utility bills * came out of Newark, New Jersey. Newark has an eye-watering average of $411.92 per month when it comes to utility bills. That equates to three quarters higher than anywhere else in America.

Life is still in you, you have goals to set and things to do. Places to travel to, and family gatherings to enjoy without the stresses and pressures of work and career. 







Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Lawrenceville, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 800-367-3000 Visit our website: www.davidlerner.com

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