Top Trends in Retirement Planning
Top trends in retirement planning will give a general understanding of the current situation many of my clients will face or are facing.
Pension plans are increasingly scarce
Defined benefit plans are designed to provide participants with a guaranteed lifetime income, or a pension. These plans, however, are becoming increasingly scarce, due in large part to the increased longevity of plan participants and the resulting costs and risks to employers. Defined contributions plans have emerged as their replacement. Defined contribution plans are investment accounts focused on investment returns and account value rather than income goals. Here, instead of being borne by plan sponsors (employers), plan risks are borne by their participants (employees) – most of whom have little or no financial expertise.
Increased focus on planning for longevity
As stated before, as life expectancies increase, so does the length of time over which retirement savings must last. Interestingly, studies have shown that people tend to underestimate their own life expectancy and do not prepare adequately for their actual lifespan.
Expansion of employer-sponsored financial wellness initiatives
Employers are recognizing that financially healthy employees make happy employees, which benefits the company. Employer-sponsored financial wellness plans focus not only on retirement planning but on risk protection, budgeting, and debt management.
Expansion of plan distribution options
There is increasing participant interest in retirement savings vehicles offering distribution options (aside from taking lump sums) and addressing risks associated with income sustainability, longevity, and market timing.
We teach our community the basics of investing, to complex trading strategies and the different investment vehicles available to them. We teach our community the benefits of entrepreneurship and how to have success as a business owner.
Our resources create a blueprint for building generational wealth, by better understanding; insurance, taxes, credit and what it means to leave a lasting legacy.
