Get ready to explore
Retirement is a unique journey for each of us. Will you choose a direct path to a traditional retirement, or decide on a "phased approach?" What will an average day look like? Where will you live? Take some time to explore these and other important issues to help you define your vision of life in retirement.
Once you've reflected on these important issues, you'll be empowered and prepared to meet with your advisor. Your advisor can help you learn about the three stages of retirement, understand the risks you may encounter and develop a strategy for fueling your retirement.
What will FUEL
your retirement years?
In the past, traditional pension plans and Social Security may have been enough to provide for a comfortable retirement. Not today. With only 26%¹ of companies offering traditional pension plans, it's becoming more challenging to create a secure source of retirement income. That means your personal savings must play a more significant role in helping you fuel your financial strategy for retirement.
43% Social Security
26% Pension/Retirement Plan
12% Employment Earnings
10% Interest and Dividends
¹LIMRA Retirement Income Reference Book, 2012
Living a longer life
As with any journey, it pays to be aware of potential detours – starting with how long you can expect to live. It's key to be realistic about your life span, so you're prepare with retirement income you won't outlive. But too many Americans underestimate their life spans. Once you reach age 65, you may be surprised at how many more years you have ahead of you.
Of those who reach age 65…
Assumes a person is in good health. 2012 Individual Mortality Basic Table projected for mortality improvement from base year 2013, American Academy of Actuaries.
How will you
SPEND YOUR TIME?
Retirement brings more freedom when it comes to how you'll spend your time. Imagine how your days will unfold. Will you volunteer? Work part-time? Travel? Spend time in leisure or family-related activities? Retirement can be a fulfilling time devoted to your passions, hobbies and pursuits. How you spend your time can have a significant impact on your retirement finances.
AN AVERAGE DAY
This is how retirees, age 65 to 74
spend most of their day
|Sleep and personal care:||9.63|
|Working and related activities:||1.44|
|Purchasing goods and services:||.90|
|Organizational civic and religious activities
|Caring for others:||.33|
|Phone calls, mail, email and computer use:||.23|
Does not add up to 24 hours due to rounding. American Time Survey, Bureau of Labor Statistics, 2011.
Will your retirement
For many retirees, retirement may not be a distinct point between working and not working. Many people continue to work – some out of necessity, while others simply enjoy the sense of purpose, social interaction and achievement that working can provide. Some individuals transition into retirement over a period of time; choosing part-time or volunteer work. Still others will test their entrepreneurial spirit with a new business venture. If you do plan on continuing to work in some capacity, how long will that last?
3 in 4 U.S. adult workers think they will continue working full or part-time after they reach retirement age.
40% will work, because they want to
35% will work, because they have to
19% will stop working, because they want to
3% will stop working, because they have to
1% will work, unspecified why
1% no opinion
Based on adults currently employed. Gallup, 2013
WHO WILL DEPEND ON YOU
for personal and financial support?
Are you part of the "sandwich generation?" Or perhaps you're a generous grandparent. Many retirees find themselves providing financial and personal support for parents and or children or grandchildren – sometimes unexpectedly and simultaneously. Exploring the potential cost of that support in time and dollars will help you prepare a strategy that keeps you on course.
SPENDING ON THE GRANDKIDS
According to a national AARP survey, today’s grandparents provide the following financial support for their grandchildren:
53% Educational expenses
37% Everyday living expenses
23% Medical or dental expenses
Percentages equal more than 100% due to multiple options selected by survey participants. Insights and Spending Habits of Modern Grandparents, AARP National Survey, 2012
Where is HOME BASE
Will you stay put? Move cross country to be closer to family? Are you considering purchasing a second home? Downsizing? Where you live in retirement affects your income as well as your emotional, social and physical well-being. When considering a move, many retirees carefully weigh the lifestyle benefits of a new climate or location with the income tax treatment of their home in the state where they choose to reside.
Purchasing a second home or seasonal residence also has implications that affect your finances and your day-to-day happiness. Consider how your location and living situation will adapt to your needs as you age – for example is your home a single level? Will maintenance become an issue?
STAY ON COURSE
with a Securian variable annuity
and a knowledgeable guide
A financial advisor with retirement income experience can help you map out a strategy using the financial GPS a variable annuity can provide:
Contact your advisor today
to learn more.
Securian’s variable annuities are issued by Minnesota Life. Guarantees are based on the financial strength and claims-paying ability of the issuing company. The investment performance of the variable investment options is not guaranteed. You can lose money investing in a variable annuity.
Ask for DIRECTIONS
A financial advisor can help you map out a strategy and provide directions for any challenges, adventures or changes of heart along the way.
Talk to your advisor about your retirement income strategy today.
48% of Boomers who work with a financial professional are very or extremely confident with their financial preparations for retirement, compared to only 28% working on their own.
Boomer Expections for Retirement. Insured Retirement Institute, 2013
ORDER your guide and workbook
The Retirement GPS Guide and Destinations Workbook can help you plot your course to retirement.×
Take our SURVEY
*Depending on date of birth
Make the most of your Social Security benefits. Contact your advisor to learn more.×
Identify more financial DETOURS
You'll be less likely to get knocked off course if you're informed and prepared to deal with five major risks to your retirement income.
This informational series can help you better understand some of the risks and challenges you may face as you steer to and through retirement.
- Longevity Risk (pdf, 1.2mb)
- Replacement Ratio (pdf, 1.0mb)
- Sequence of Returns Risk (pdf, 1.2mb)
- Social Security (pdf, 844kb)
- Inflation Risk (pdf, 791kb)
What are the
THREE PHASES of retirement?
Learn more about the three stages of retirement and typical experiences and financial needs that emerge during each phase – so you can prepare and shift your financial priorities accordingly.×