Boomers Less Confident About Retirement, But There’s Hope
A recent survey by Personal Capital and Empower found that economic confidence and financial health were down across all age groups in 2021. However, those aged 55-64 were the most financially hurt by COVID-19.
Despite declining confidence and financial health, Americans as a group are prioritizing paying off debt, saving for retirement, and losing weight. So, optimism and hope remain high.
Near-retirees have options and the power to make a change. Here are five tips to help you increase your confidence about retirement.
Find Someone To Talk To
Craig Birk, a certified financial planner at Personal Capital, adds that most people don’t know their net worth, how much money they have, or what they’re buying. So, some near-retirees may find relief through knowledge and planning.
Once you understand your cash flow, investments, and retirement plans, you can execute a plan based on your goals. As you begin to see what you have and need to have, you’ll worry less. Consider bringing in a financially knowledgeable friend or outside advisor to talk to or offer a second opinion.
Make a plan
You can safely plan to withdraw 4% of your total investments annually without running out of money in retirement. With this rule in mind, you can calculate your savings goal by multiplying your excess budget and social security payment by 25. Now you have a starting point.
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