Posted by (American Life Insurance Guide(Net) Statistics show that many self-employed workers and small and medium-sized business people in the American society did not participate in any plan.1/3 did not get any retirement plan through the employer.
At the same time, due to the consumption and saving habits of Americans, it is difficult for them to save the large sums of money they need after retirement.As a result, many Americans feel that they simply do not have enough ability to maintain the quality of their retirement life.Others believe that they cannot retire at all and plan to work as long as possible.
The Pew Charitable Trusts opened a national survey of employees of private companies in 2016 and showed the following conclusions:
- Most employees are uncertain about their retirement life.
- Although some interviewees hope to continue working after the age of 65, most believe that they are forced to do so because of financial needs.
- Nearly two-thirds of the interviewed working population said that they may work after 2 years of age.This is most common among men, low-income and full-time.White, female, low- and middle-income respondents are more inclined to say that this is because they feel they need to do this.
- Many interviewees stated that they will work as long as possible and are not sure when – or whether they will retire.
In the Chinese community, our customary view is that Chinese love to save, and the per capita income of Asian communities is relatively high. Retiring at an appropriate age does not seem to be a big problem.However, even without considering market factors and rising cost of living, are you really ready?
We may wish to consider self-examination and answer the following 3 questions.Through this question and answer, we will help readers, especially small and medium-sized business owners or self-employed individuals, build an understanding of the U.S. retirement plan market.
1. Have you saved enough money?
In order to pay for the living expenses after retirement and continue the previous quality of life, the general quick calculation method is to prepare the annual income before retirement70% to 85%, Used to pay for expenses such as food, housing and transportation.
This situation is not absolute. For example, for people over 65, housing costs only account for 1/3 of expenditure.Published in 2016 by the U.S. Bureau of Labor Statistics"Consumer spending survey"According to the, this group’s annual housing expenses are $15,886.
In addition, Fidelity Fidelity Group released in September 2017"Regarding the increase in medical and health insurance expenditures for retirees"The report pointed out that retired couples need $275,000 to pay for various health care expenses after retirement.
Refer to the total basic living expenditure above, plus the total expenditure of each category, to save in advance.If you also consider traveling twice a year and entertainment hobbies, you need to add additional annual expenses in this area.
Finally, let's consider the retirement income situation and deduct this part of the money from the required savings deposit.First of all, small and medium-sized business owners and self-employed people usually have social security benefits/pension, and may also have other cash savings or investment income.
American Life InsuranceGuidance Network provides aOnline calculation widget(Click) to help you calculate.
2. Do you have a plan for the composition of your income after retirement?
Retirement planning usually involves putting savings and other forms of income into a pool of funds that can be withdrawn at retirement.Effective planning can not only ensure that you have enough income after retirement, but also receive and use it in a tax-friendly way.
Income after retirement comes from multiple channels, such as social security pensions, retirement accounts such as 401(k)s, or life insurance and annuities.Each type of product has a different taxation policy. Obtaining these revenues from different channels will face different taxes.
Everyone's needs and income are different, but enjoying retirement is indeed a common goal.If you do not have such a plan, you can seek the help of a financial adviser to build a retirement plan framework, and then implement it step by step.
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3. Do you have any protection in the face of accidents?
The last thing people want to see is all kinds of accidents. These accidents are divided into "external" and "internal" categories.
External accidents, such as the sharp volatility of the stock market, led to the devaluation of certain retirement accounts, resulting in lower retirement income and inability to maintain the quality of life.Internal accidents may come from accidents or various diseases of the body, so long-term care bills need to be paid.In retirement planning, you can use the following options to face these unexpected financial difficulties.
Annuity productsCan partly avoid "surprise" in the external financial market.For certain types of annuity products, when the stock market fluctuates sharply, the cash value of the account can be guaranteed, or provide a guaranteed minimum interest rate annual income, or provide a guaranteed minimum amount of income.
Guaranteed to provide a fixed amount of financial products (Guaranteed Income Products) every month, can help pay for daily retirement living expenses, and is not affected by the violent volatility of the stock market.
Life Insurance Products和Health Savings Account (HSA)Can deal with "accidents" from people themselves, especially health.These two methods can help retirees withdraw compensation or pay future medical bills in a tax-free manner.In particular, some life-long life insurance products, through additional clauses (Rider), provide other payment conditions, which can cover the cost of long-term care, and the cost of chronic diseases in the elderly, such as home care, assisted living care, and related Service overhead.
Summary
Retirement is something that everyone will face.As more and more millennials are entering the age of income and family stability, retirement issues will gradually become the focus of their financial planning.Planning as early as possible and making a reasonable allocation based on the actual situation of the individual will have a positive and significant impact when the retirement age comes.If you need to better understand the various financial products mentioned in the article or retirement financial planning, please contact a professional and excellent financial adviser.
(American Life Insurance Guide）
