Top 7 Factors That Should Affect Your Retirement Strategies

It's one thing to name the various items you might want to include in your retirement portfolio, but let’s focus for a moment, on a broader view of possible strategies.

When choosing retirement strategies, we have to take into account various factors that exist now or might exist later in our retirement years. With that in mind, what exactly are some of the most important factors, that someone might want to think about, when saving retirement dollars?

1. Start Early Because Building Savings Takes Time
The earlier you get started on your "nest egg," the better. Retirement tends to come up on us faster than we expect and take us almost by surprise. Time is a huge factor, and it argues for a long-term view of the matter. All your savings accounts will accrue more value if you start earlier rather than later.

2. Plan For A Long Retirement
Too many people assume the older model of retiring at 65 and having maybe 10 years of retirement before passing on. But this is increasingly not the way it usually happens nowadays. Seek out options that allow for guaranteed retirement income for 20 to 30 years or even better, For Life - just in case you need it.

3. Protect Yourself Against Market Volatility
It is unwise to put all of your eggs in one basket - and even more dangerous if that basket is rocking wildly on the raging sea of day-to-day market volatility. Including safer, long-term retirement savings options like fixed index annuities (FIAs) in your overall strategy can guarantee your principal, protect your gains, and assure a lifetime source of income even while allowing for long-term gains.

4. Social Security Income Won't Be Enough
Too many people think they can just rely on Social Security benefits as their sole source of income in their retirement years. But SS was never intended to provide more than 40% of one's previous income as a benefit - and while expenses may be lower at this stage of life, you will likely need more than that! That's why other approaches need to come along and supplement SS benefits.

5. You Have To Take Inflation Into Account
Inflation is another big factor that impacts the longevity of our savings. It may be only 2% to 3% per year, but over the years it adds up to a lot. You might, for example, need 50% more cash to equal the same purchasing power 15 or 20 years from now as you need now. When estimating future financial needs, you obviously need to adjust estimates based on the projected effect of inflation.

6. Have A Withdrawal Plan
Aside from a regular deposit plan while saving up for retirement, it is also essential to formulate a regular withdrawal plan for during retirement. Without this kind of planning, you could run out of money early and have to rely solely on Social Security income. 

7. Allow For Flexibility
A final factor to consider is the need for flexibility as you enter your golden years. Don't let retirement strategies become a rigid straightjacket! You must have the ability to quickly access funds in the case of an emergency or unpredicted need arising. 

To learn more about today's most effective retirement strategies and the specific needs they are intended to meet, contact our team of retirement planning experts at Summerlin Benefits Consulting today!