Half of retirement savers have changed their investment behavior since 2020.
A 2022 Allied for Life Income Protected Retirement Income and Planning (PRIP) study of 2,025 participants aged 45 to 75 revealed that 50% are more inclined to protect their retirement income since the onset of Covid-19. Interestingly, 44% agree that financial advisors should introduce clients to financial products that offer guaranteed income for life in retirement.
Nearly 73% of respondents who work with a finance professional think their retirement savings and sources of income will last a lifetime, compared to 36% without Financial Advisor.
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Older workers want to prioritize investment protection over growth, likely due to market volatility, high inflation, rising interest rates and rising energy prices . Fears of a full-scale recession have overshadowed 2022, although analysts expect a moderate recession for an extended period.
The median average retirement income of retirees age 65 and older was $47,357, reports Annuity, citing the most recent data from the US Census Bureau. Most rely on Social Security and annuities for a stable income stream in retirement, but don’t understand that fixed income options lose value due to inflation.
In addition, many are locked into a lower monthly income because they dipped into Social Security sooner than needed.
In 2022, the maximum monthly benefits was $4,194 for those retiring at age 70 and $2,364 at age 62, the minimum retirement age. In reality, the average income of retirees in August 2022 was $1,672.76. Average annuity interest rates for a premium deposit of $100,000 ranged between 6.54% and 7.78% in August 2022, which translates to an annual income range of $6,540 to $7,780 , reports Investor’s Business Daily, citing data from Cannex Financial Exchanges.
Covid-19 has been a wake-up call for Americans without a financial plan and decent retirement savings.
Many may have opted for DIY investing and lost more, while others may have sought financial advice from certified professionals and turned to a new portfolio design for future fluctuation protection. of the market.
Fiduciary Financial Advisors can assess your finances, assets, liabilities and retirement needs to revamp an existing financial plan or create a new one that works in your best interest. They can help you with taxes, estate and retirement planning, career transition, debt management, monthly income, investment advice and important life events, while teaching you how to keep your emotions at bay and invest with confidence.
A financial advisor could help you improve your retirement income by helping you properly plan your Social Security withdrawal, recommending the best annuities available, and exploring ways to increase your contributions in traditional 401(k)s and IRAs for a huge monthly income in retirement. Additionally, an investment advisor might recommend investing in blue chip assets like real estate or low-risk options like asset-backed debt to create additional income streams.
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Find a qualified financial advisor shouldn’t be difficult. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your advisors at no cost to decide which one is best for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
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If you are just starting to invest, it can be useful to work with a robo-advisor. Robo-advisors offer portfolio management services just like traditional financial advisors, but they generally have lower fees and account minimums. here are the Top 10 robo-advisors.
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