Modern retirees are living longer and experiencing retirement in novel ways. No longer do people labor for the same employer for 50 years, retire with a predictable pension, and settle into a quiet lifestyle.

Baby boomers control 70% of the nation's disposable income, resulting in more active retirees today. They are traversing the globe, acquiring new skills, and redefining the characteristics of a retirement community. With 10,000 baby boomers turning 65 every day, this desire for a fulfilling retirement is becoming increasingly prevalent. [1]

In a survey conducted by EBRI in January 2021, 80% of retirees expressed confidence that they will have enough money to live comfortably throughout their retirement, up from 77% a year earlier. One way to maintain confidence in your Fortune 500 retirement is to evaluate your needs, plan for the known and unknown, and look ahead. [2]

With that taken into account, a study conducted by the National Institute on Retirement Security (NIRS) in April 2021 found that 80% of Fortune 500 employees who have access to workplace retirement plans are more confident in their retirement prospects compared to those without access. This highlights the importance of taking advantage of retirement plans offered by your employer, as they can significantly contribute to your financial security in retirement. By actively participating in and maximizing the benefits of your workplace retirement plan, you can approach retirement with greater confidence, knowing that you are taking steps to secure your financial future.

Amount Spent Per Item by a Retired Couple.

While you cannot predict the future, you can plan for the retirement lifestyle you desire and follow these five steps to get there with confidence.

More than sixty percent of baby boomers fear running out of money in retirement more than dying. Creating a retirement budget can help ensure that you have sufficient funds to cover expenses during your Fortune 500 retirement. This helps determine what will be required and how it will be met. [3]
 
The positive news is that 67% of pre-retirees have thought about creating a retirement budget. When developing a retirement plan for Fortune 500 employees, it is essential to know how much money you will need. Knowing how much your retirement may cost and identifying many of the expenses you can anticipate can help you develop financial strategies that may boost your self-assurance. Here are a few questions to consider when creating a budget:

How Much Will My Living Costs Be?

Expenses can rapidly accumulate in retirement. Americans aged 65 and older spend an average of $4,008.33 per month on average. [4]
 
To determine your costs, write down every dollar you spend to meet your daily requirements, from transportation to food. Pay special attention to any expenses that could be eliminated from your budget.

How Much Will Health Care Cost?

Healthcare costs are the second-most important financial concern for retirees. About 70% of 65-year-olds will require long-term care at some point in their lives. The average couple in retirement may need approximately $300,000 (after taxes) to cover health care costs. [5]
 
Investing in a Health Savings Account (HSA) is one option that can help Fortune 500 retirees prepare for health care. An HSA is not insurance, but it does offer a tax-advantaged savings account to which you and possibly your employer can contribute over time. The majority of medical expenses, including prescription medications, dental care, and vision care, are covered by these funds.
 
Once you enroll in Medicare, you can no longer make pre-tax contributions to your HSA. If you withdraw funds from your HSA for non-medical expenses, the funds become taxable income and you will be subject to an additional 20% penalty. After age 65, you can withdraw funds without incurring a 20% penalty, but they are still taxable income. In certain jurisdictions, HSA contributions are exempt from federal income tax but not from state taxes.

What Will Be Your Sources of Income?

There are numerous sources of income, including retirement accounts, pensions, part-time work, Social Security, and others. In general, retirees may require 80% of their pre-retirement income to live comfortably during their golden years. However, this number can differ considerably based on one's lifestyle. [6]

Some retirees leave the workforce with debt. In 2020, the average debt of retirees increased by $9,979 to nearly $20,000, an increase of 104%. [7]

Today's retirees are more likely than any previous generation to have these liabilities. The average debt for families headed by a person aged 50 to 59 is $68,217. [8]

It is crucial that you examine your outstanding debts now and take measures to ensure that they won't weigh you down as you enter your golden years.

Begin your retirement plan by calculating your actual expenses and establishing a budget. Compile a list of both the sources of your funds and the destinations for those funds. Without a clear view of your income and where it is going, you may lose sight of your budget and find it difficult to maintain your standard of living. According to numerous retirees, their Social Security benefit is insufficient to support monthly expenses. The monthly average payout is $1,536. Currently, 40% of Social Security recipients rely on these benefits as their primary source of income. [9, 10]
 
When formulating a strategy, you should consider diversifying your income streams to last the remainder of your life. The more sources of income you have, the more secure you are in the event that one source of income disappears. Consult with a reputable financial expert to determine your income requirements. The quantity of income you may need varies from person to person, as your budget may be influenced by your lifestyle choices, medical expenses, and other personal factors.

Here's a retirement reality check: lack of savings and retirement planning saw the most growth; anxiety about savings increased by 7% in the past year, while retirement anxiety increased by 8%. Although we feel more confident about retirement, money concerns remain a concern. [11]
 
Fortune 500 employees should aspire to retire with ten times their annual salary in reserves. That is a staggering quantity of money for many. These expenses may include Social Security payments, with the remainder coming from retirement accounts and private reserves. Many individuals anticipate their employer-provided savings to be a significant source of retirement income.

Pensions Are Going Extinct

The In the United States, pensions are disappearing. Prior to the 1980s, pensions were the most prevalent retirement plan offered by employers. Less than 17% of businesses currently offer pensions.

Although many people view retirement as a time when they will no longer labor for others, continuing to work is an integral part of their overall strategy. Nearly half (46%) of Americans aged 60 to 75 who were surveyed by AAG said they intend to work part-time after retirement. [12]
 
Regardless of whether you intend to work or not, the following are some advantages that working can offer to your retirement:

• Augment Your Income. Continuing to work may help you keep money in your pocket, whether for additional spending money or to cover daily expenses. It may also cover gaps left by other sources of income. Your financial objectives may help determine how much money you need to continue earning from part-time or full-time work.

• Explore New Interests. For some, retirement employment involves pursuing old or new passions. When you pursue these interests, you may also foster continued personal development in your later years, which is beneficial to your health.

• Remain Social. Maintaining a social network in retirement may assist individuals in remaining optimistic and healthy. In fact, 23% of workers who are working or plan to work beyond the age of 65 do so solely to maintain social connections, and approximately 20% of workers dread feeling isolated and alone in retirement. Keeping busy at work may help you overcome your melancholy.
  

Developing a retirement plan is essential. Only you know what a satisfying retirement entails for you, and now is the ideal time to take steps toward that existence. By calculating your costs, saving in advance, and working with a professional, you can position yourself for a comfortable and confident retirement.
 

Approaching retirement is like preparing for an important expedition. You must map out your retirement budget, identifying costs and income sources, much like planning supplies for a journey. Just as explorers rely on a team, retirees can leverage various income streams like retirement accounts, pensions, and Social Security. By carefully charting your course, estimating expenses, and diversifying income, you can confidently embark on the adventure of retirement, equipped with the knowledge and resources to navigate any challenges along the way.

Remember, if you have any financial queries, we can assist you in navigating the complex retirement landscape and work with your legal and tax professionals. We believe that retirement is a chance to live your greatest life, and we're here to help you realize that vision.

The Retirement Group is a nation-wide group of financial advisors who work together as a team.

We focus entirely on retirement planning and the design of retirement portfolios for transitioning corporate employees. Each representative of the group has been hand selected by The Retirement Group in select cities of the United States. Each advisor was selected based on their pension expertise, experience in financial planning, and portfolio construction knowledge.

TRG takes a teamwork approach in providing the best possible solutions for our clients’ concerns. The Team has a conservative investment philosophy and diversifies client portfolios with laddered bonds, CDs, mutual funds, ETFs, Annuities, Stocks and other investments to help achieve their goals. The team addresses Retirement, Pension, Tax, Asset Allocation, Estate, and Elder Care issues. This document utilizes various research tools and techniques. A variety of assumptions and judgmental elements are inevitably inherent in any attempt to estimate future results and, consequently, such results should be viewed as tentative estimations. Changes in the law, investment climate, interest rates, and personal circumstances will have profound effects on both the accuracy of our estimations and the suitability of our recommendations. The need for ongoing sensitivity to change and for constant re-examination and alteration of the plan is thus apparent.

Therefore, we encourage you to have your plan updated a few months before your potential retirement date as well as an annual review. It should be emphasized that neither The Retirement Group, LLC nor any of its employees can engage in the practice of law or accounting and that nothing in this document should be taken as an effort to do so. We look forward to working with tax and/or legal professionals you may select to discuss the relevant ramifications of our recommendations.

Throughout your retirement years we will continue to update you on issues affecting your retirement through our complimentary and proprietary newsletters, workshops and regular updates. You may always reach us at (800) 900-5867.

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6. Hagen, Kailey. "How Much Do I Need to Retire Comfortably?" The Montley Fool, 2021,

7. Lazic, Marija. "31+ Retirement Statistics You Need to Know in 2021." Legaljobs, 2021, 

8. Eisenburg, Richard. "Surprising New Retirement Confidence Survey Finds Retirees Say: What Pandemic." Forbes, 2021, 

9. Coxwell, Kathleen. "What Happens if I Really Do Run Out of Money in Retirement?" New Retirement, 2021, 

10. Bureau of Labor Statistics. "Average Retirement Expenses." Bureau of Labor Statistics, 2021,

11. Manganaro, John. "Health Care Costs in Retirement Remain a Top Stressor." Plansponser, 2021, 

12. Hagen, Kailey. "How Much Do I Need to Retire Comfortably?" The Montley Fool, 2021, 

13. Humphrey, Paul. "Managing Your Debt in Retirement." Kiplinger, 2021,

14. Knueven, Liz. "The average American debt by type, age, and state." Business Insider, 2021

15. Social Security Administration. "Monthly Statistical Snapshot, June 2021." Social Security,

16. Konish, Lorie. " 'Social Security doesn't even cover my entire rent.' How retirees say Congress should change benefits." CNBC, 2021,

17. Little, Kendall. "Americans are just as anxious about money as they were one year ago. Here's How to Manage the Stress." Time, 2021,

18. Ghosh, Palash. "A third of seniors seek to work well past retirement age, or won't retire at all, poll finds." Forbes, 2021,