Outliving Your Assets
You've finished your career. Now you're looking to enjoy the fruits of your labor. The wealth you've accumulated is significant, perhaps more than you thought possible. But is it enough? Will it last?
Those questions become more pressing as Americans tend to retire younger and live longer than ever before.
According to the U.S. Bureau of Labor Statistics, the average length of retirement has increased from 7 years in the 1950's to over 20 years today.
By setting up a retirement plan with your investment professional, you can help ensure that what you've worked so hard to accumulate will be there to provide for you when you need it most.
Find out if what you're saving now is going to be enough to fund the retirement you have in mind - contact Diana Jeffers * at Agency Associates Financial Services at 317-704-8321 or toll-free at 877-674-2242 or visit HartfordOnline for an easy retirement calculator.
The Need To Supplement Your Income
Nearly 3 out of 4 Social Security recipients rely on Social Security for at least half of their retirement income.
But considering that the average monthly Social Security benefit in 2003 was $922.10, 1 relying heavily on Social Security may not be a good idea.
Many will have to rely on sources other than Social Security to provide their income in retirement, as Social Security accounted for only 39% of the income of people age 65 and older.
The financial assistance that Social Security gives its recipients is indeed helpful during retirement. But at best, it should only be a part of your overall retirement plan.
Taking advantage of retirement investments that are available to you can help you achieve a more comfortable retirement. The sooner you make contributions to a retirement plan, the more time it has to accumulate for retirement.
The Cost of Retirement
Sixty percent of today's workers haven't calculated how much money they think they'll need in retirement. 2
The popular figure is 80-90% of your pre-retirement income.
Just to get an idea of what it will cost to eat, take a look at this:
Contact Diana Jeffers * at Agency Associates Financial Services at 317-704-8321 or toll-free at 877-674-2242 to help you determine if what you're saving now is going to be enough to fund the retirement you have in mind. Or visit HartfordOnline for an easy retirement calculator.
Inflation
Consider that with just 3% annual inflation over 20 years, the purchasing power of a dollar decreases to just 55 cents. If you live on a fixed income, that means you would only be able to afford about half of what you can now.
And some costs are increasing much faster than 3%. For example, in 2005, the annual increase was closer to 12% for retiree health care costs 3, including:
Prescription medications Home health care Nursing home care Some retirees are understandably cautious about taking on investment risk with their nest egg. But investing too conservatively runs the risk of not keeping pace with expected inflation.
Contact Diana Jeffers * at Agency Associates Financial Services at 317-704-8321 or toll-free at 877-674-2242 for assistance to find out if you're on pace to outpace inflation. Or visit HartfordOnline for an easy retirement calculator.
1. Social Security Administration, Social Security Bulletin: Annual Statistical Supplement, 2003 ↩
2. EBRI Retirement Confidence Survey, 2004 ↩
3. USA TODAY/Kaiser/Harvard poll, 8/05 ↩
Securities offered through Woodbury Financial Services, Inc., Member NASD, SIPC, PO Box 64284, St. Paul, MN 55164, 800-800-2000.
"The Hartford" is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing company Hartford Life Insurance Company and Hartford Securities Distribution Company, Inc. ("HSD").
HSD (member NASD and SIPC), a registered broker/dealer affiliate of The Hartford, has established certain service programs for retirement plans, including defined contribution employee retirement benefit plans, through which a sponsor or administrator of a Plan may invest in mutual funds on behalf of Plan Participants.
The Hartford's 401(k) retirement programs are funded either by a group variable annuity contract (Countrywide: HL-14991; NY & FL: HL-14973) or by a group variable funding agreement (HL-16553 and HL-16553 (NY)) issued by Hartford Life Insurance Company, Simsbury, CT. Retirement programs can also invest in mutual funds through custodial accounts.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. This information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your own tax or legal counsel for advice.
You should carefully consider the investment objectives, risks, and charges and expenses of the group variable annuity (or group variable funding agreement) and its underlying funds before investing. This and other information can be found in the disclosure documents and the prospectuses for the underlying funds, which can be obtained from your investment representative or by calling 800-874-2502, option 4. Please read them carefully before you invest or send money.
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