News.Life

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

Unknown investing, money, personal finance retirement, personal finance saving spending, saving money

<img data-document-id="cms/api/amp/image/AA1ylJah" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1ylJah.jpg"/>
<div>
 
 Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing expenses vying for attention, it may not always be clear when it’s best to make additional payments into your fund.
 
 
 Based on ASIC's Moneysmart, someone who starts at age 30 by adding an additional $20 each week might end up with $50,000 more when they retire. Additionally, there are potential tax benefits associated with making extra superannuation contributions.
 
 
 However, securing funds to save can be challenging, particularly within today’s financial climate, and boosting contributions to your superannuation might not always be the best strategy.
 
 
 We consulted with two specialists to delve into when this approach is advantageous and assist you in grasping the possible advantages and disadvantages.
 
 <h4>
 First, cover the basics
 </h4>
 
 Kate McCallum serves as a financial advisor and is also one of the co-authors of The Joy of Money.
 
 
 According to Ms McCallum, if you find yourself in your 20s, 30s, or 40s, you may encounter significant financial pressures. These could involve paying rent, setting aside money for a home purchase, managing mortgage obligations, covering educational fees, and handling everyday living costs.
 
 
 If you're carrying consumer debts like credit card balances or personal loans, it makes more sense to focus on reducing those before increasing your superannuation contributions.
 
 
 This is due to the fact that the interest rates on these items are quite high, and clearing them off offers a guaranteed return.
 
 
 It's equally advisable to possess an
 emergency fund
 — preferably enough to cover at least 90 days of living costs.
 
 
 In addition to providing mental tranquility, this can also prevent the necessity of taking on debt for unforeseen costs.
 
 <h4>
 Why young individuals ought to ponder thoroughly before contributing additional funds to their superannuation.
 </h4>
 
 Ms McCallum emphasizes the importance of assessing your entire financial position and objectives prior to thinking about increasing your superannuation contributions.
 
 
 Significantly, the majority of individuals cannot withdraw their superannuation until they attain their preservation age, ranging from 55 to 60 years old, based on their birth date.
 
 
 Therefore, if you're 30 years old and decide to make a voluntary contribution to your superannuation, you might be tying up those funds for over three decades.
 
 
 Ms McCallum indicates that voluntary superannuation contributions tend to be more feasible for individuals above 45 years old, as they won't have to await fund access for too long.
 
 
 Rather than doing so, she recommends that young individuals concentrate on other important areas and depend on their employer's obligatory superannuation payments.
 
 
 "If you’re in your 20s, 30s, or possibly even into your early 40s, it’s sensible to let the super guarantee function as intended and allocate any extra cash flow to other areas, providing greater financial leeway," she explains.
 
 
 If you're looking to invest but also keep your funds accessible, consider doing so outside of your superannuation. You could choose to put the money into a managed fund instead.
 exchange-traded fund (ETF)
 instead.
 
 
 Alternatively, if you own a home with a mortgage, you might consider placing the funds into an offset or redraw account.
 
 <h4>
 How making voluntary superannuation contributions might assist you in reducing your tax burden
 </h4>
 
 You have the option to contribute "concessionally" to your super account by arranging a salary sacrifice with your employer or by directly transferring funds into your super account and then claiming a tax deduction.
 
 
 This approach may seem appealing since these contributions face a tax rate of just 15%, significantly lower compared to the 30% paid by individuals earning a typical salary in Australia.
 
 
 Therefore, as your earnings increase, contributing extra to your super becomes more appealing due to the increased tax advantage.
 
 <h4>
 Is it advisable to contribute to your superannuation when you're stepping back from work for a period?
 </h4>
 
 If you're stepping away from work due to having a child or providing care for another person, you may have concerns about your superannuation balance and whether you should make additional contributions.
 
 
 Even though you can continue adding to your super during these times, the lower income might lessen the possible tax advantages of making concessional contributions.
 
 
 If your income is less than $40,000 and you have a partner, this may apply to them as well.
 contribute to your superannuation on your behalf
 and apply for a tax refund of up to $540.
 
 
 Another approach some partners adopt is referred to as
 contribution splitting
 This includes transferring a portion of one partner’s superannuation contributions to their spouse.
 
 <h4>
 How contributing more to your superannuation can assist you in saving up for your first house.
 </h4>
 
 Although many individuals aren't able to access their superannuation until reaching their 60s, several exemptions do apply.
 
 
 The FHSS scheme enables first-time homebuyers to withdraw up to $50,000 in voluntary contributions along with their associated earnings, which can be used for a down payment.
 
 
 The scheme has
 complex rules
 Including aspects related to withdrawals, which is why it hasn’t gained much popularity. However, independent financial advisor Jacie Taylor suggests that this approach can be beneficial for individuals aiming to save for a deposit.
 
 
 "What a fantastic initiative this is, but unfortunately, it hasn’t gained enough awareness," Ms Taylor states.
 
 
 Remember that failing to buy a property after withdrawing funds from the scheme may result in tax penalties.
 
 <h4>
 You might have the option to increase your superannuation without making additional payments.
 </h4>
 
 If you can't make additional contributions, there are still various methods to ensure your superannuation is performing well for you.
 
 
 Ms. Taylor emphasizes the significance of examining how your superannuation is invested and the fees you're charged.
 
 
 Ms Taylor suggests that if you're younger, you might consider opting for higher growth investment options with your super, as these usually offer greater returns over an extended period.
 
 
 "This really matters for younger individuals," she states.
 
 
 If you're uncertain whether a voluntary super contribution strategy suits your needs, it may be beneficial to consult with a financial advisor or planner.
 
 
 The content of this article provides only general details. It would be wise to seek individualized professional guidance tailored to your specific situation.
 
</div>

Should You Top Up Your Super Now or Later? Timing Matters for Your Retirement Nest Egg

Unknown investing, money, personal finance retirement, personal finance saving spending, saving money

Increasing your superannuation contributions can enhance your nest egg for retirement, yet with numerous pressing expenses vying for attention, it may not always be clear when it’s best to make a…

3 Essential RMD Tips Every Boomer Needs to Know

Unknown individual retirement accounts, money management, personal finance retirement, retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1xOK9X" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1xOK9X.jpg"/>
<div class="keypoints-box">
 <h3 class="keypoints-header">
 Key Points
 </h3>
 <ul class="keypoints-list">
 <li class="keypoints-item">
 
 Retirement account distributions can pose challenges for older individuals unprepared to start using their saved funds.
 
 </li>
 <li class="keypoints-item">
 
 Some tax-favored retirement plans do not require minimum distributions.
 
 </li>
 <li class="keypoints-item">
 
 Your distribution won't lead to a tax bill if you plan it carefully.
 
 </li>
 <li class="keypoints-item">
 
 Four million Americans plan to retire this year. If retiring alongside them is your goal,
 click here now
 To check if you're lagging behind or moving ahead.
 It just takes a moment.
 (Sponsor)
 
 </li>
 </ul>
</div>

 Setting aside funds for retirement through an IRA or 401(k) might lead to significant tax benefits. You not only avoid taxation on this portion of your earnings now but also benefit from tax-free growth within these accounts. Taxes will be due solely upon withdrawing money from your savings later in life.


 However, there’s a drawback to setting aside funds for retirement in an IRA or 401(k). At some point, you will be obligated to begin withdrawing money from your account through what are known as required minimum distributions (RMDs).


 For certain individuals, Required Minimum Distributions (RMDs) pose no challenge. Suppose you must withdraw $12,000 annually from your IRA according to your account value and projected lifespan, yet this sum was already intended to meet your living expenses; thus, there’s no concern involved.


 However, for older individuals who do not require those funds, Required Minimum Distributions (RMDs) can be troublesome. They might not only lead to an unexpected tax liability but also reduce the amount of money available to accumulate in a way that offers tax advantages.


 Nevertheless, with adequate financial planning, Required Minimum Distributions (RMDs) can cease to be an issue. If you're feeling anxious about taking RMDs upon retiring, here are three key points you ought to understand regarding these distributions.

<img data-document-id="cms/api/amp/image/AA1Cc2mC" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cc2mC.jpg"/>
<h2>
 1. These rules do not pertain to Roth 401(k)s anymore.
</h2>

 In the past, Roth IRAs were the sole tax-favored retirement plans allowing seniors to avoid required minimum distributions (RMDs). However, it’s important to recognize that Roth 401(k)s also no longer enforce these RMD requirements.


 This is beneficial since Roth IRAs come with income restrictions, whereas Roth 401(k)s do not. Therefore, if your earnings exceed the limit for a Roth IRA yet your employer offers a retirement plan with a Roth option, you’re still able to proceed.


 Of course, if you
 do
 make more than the limit for a Roth IRA, then you might consider
 backdoor option
 To investigate. However, a Roth 401(k) might simply be more convenient.

<h2>
 2. There's no requirement for them to be used.
</h2>

 A common misunderstanding is that Required Minimum Distributions (RMDs) compel you to deplete your retirement savings annually. While it’s correct that failing to withdraw RMDs from a tax-favored account can result in significant fines, the Internal Revenue Service (IRS) does not mandate how you use these distributions. You have control over whether you choose to spend them or not.


 If you find yourself financially secure enough not to rely on these funds for daily costs, you could opt to withdraw your Required Minimum Distributions (RMDs) and channel them into a taxable investment account instead. Alternatively, you might choose to create a certificate of deposit (CD) staircase at an institution providing competitive returns. In this case, remember that any profits or interests generated will not benefit from favorable taxation. However, having those extra funds available means you retain the flexibility to continue expanding your wealth without feeling pressured to allocate it towards particular expenditures.

<h2>
 3. Giving them away might wipe out your tax liability.
</h2>

 The primary issue with Required Minimum Distributions (RMDs) is that retirees often find themselves obligated to pay taxes on withdrawals they might not require. However, it’s not guaranteed that these RMDs will result in a significant tax liability for you.


 If you contribute your Required Minimum Distributions (RMDs) to charity through what’s called a qualified charitable distribution, you can avoid taxation. However, the crucial point is to direct your RMD payment straight to an eligible nonprofit, rather than withdrawing the funds yourself and subsequently issuing a separate donation check.


 Retirees often face Required Minimum Distributions (RMDs), yet these distributions do not always disrupt their financial situation later in life. You can adopt strategies to prevent having RMDs altogether. However, should such measures fail, there are methods to handle your RMDs effectively and profitably. Additionally, seeking advice from a financial consultant could prove beneficial in handling both your RMDs and the potential taxes tied to them.

<div class="fwpPitch">
 <h2>
 
 Get Ready To Retire
 
 (Sponsored)
 
 
 </h2>
 
 Begin by completing a brief retirement quiz from SmartAsset, which will connect you with up to three financial advisors serving your region and wider areas within five minutes or even quicker.
 
 
 Every advisor has undergone scrutiny from SmartAsset and is required to adhere to a fiduciary standard, ensuring they work in your best interest.
 
 
 Here’s how it works:
 
 
 1.
 Complete the SmartAsset advisory matching quiz
 
 
 2. Go through your pre-selected matches whenever you have time. Look over the profiles of the advisors.
 
 
 3.
 Consult with advisers at no expense to you.
 . Initiate contact via a phone call or meet in person for an introduction, then decide who you will collaborate with moving forward.
 
 
 Tap here to begin your journey!
 
</div>

3 Essential RMD Tips Every Boomer Needs to Know

Unknown individual retirement accounts, money management, personal finance retirement, retirement, retirement planning

Key Points Retirement account distributions can pose challenges for older individuals unprepared to start using their saved funds. Some tax-favored retirement pla…

From $5.15/Hr at Taco Bell to $3.5M by 39: My Simple Rule for Financial Freedom

Unknown investing, personal finance careers, personal finance retirement, retirement planning, work and pay

American Jamal Robinson joined the workforce with a single objective: to achieve retirement at the earliest opportunity.


 The individual, who is 40 years old, mentioned during his conversation that he established a retirement target for himself at a young age, specifically when he was a teenager.
 CNBC Make It
 .


 Robinson stated, 'I always believed that condensing that period of my life into less time would be the most logical approach.'


 'At the age of 17, I decided to aim for early retirement by 45, but surprisingly achieved this goal six years ahead of schedule.'


 Having retired, Robinson has been enjoying a comfortable life in
 Dubai
 from his $3.5 million savings.


 What are the keys to achieving success? It involves saving money, making investments, and concentrating on sustaining your financial independence.


 Nevertheless, it took Robinson some time to achieve his objective, during which he earned $5.15 per hour at Taco Bell.

<img data-document-id="cms/api/amp/image/AA1CmsxO" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1CmsxO.jpg"/>

 Robinson acknowledged that his upbringing without significant financial resources influenced the way he managed and accumulated wealth later in life.


 "I felt quite alone in the world without substantial backing, so I believed it was crucial to accumulate as much wealth as possible, just in case anything went wrong and I needed to fend for myself," he elaborated.


 This taught him about the 'importance of money' early on and secured his first employment as a church custodian at just 14 years old.


 When he was 16, he started doing lengthy shifts at Taco Bell while going to school.


 Robinson received a full scholarship to attend Tennessee Tech where he obtained bachelor’s degrees in both computer engineering and mathematics.


 After graduating, the technology specialist started his initial full-time position with an annual salary of $41,000, which eventually grew consistently to reach $225,000.


 His compensation increased to $400,000, then $727,000, and ultimately reached $1 million.


 As he worked, he continued his education to obtain additional qualifications.
 
 nine post-graduate certifications in business and technology along with an MBA.
 

<img data-document-id="cms/api/amp/image/AA1Cmv9p" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cmv9p.jpg"/>

 
 Robinson collaborated with firms such as
 Amazon
 ,
 Microsoft
 ,
 IBM
 And prior to his retirement from Intel, he went on to become a data science professor at UC Berkeley.
 


 
 Nevertheless, despite his resume and salary being at an all-time high, he never saw himself as a major spender.
 


 "I still see myself today as just a minimum-wage worker earning $5.15 an hour," Robinson confessed.


 'I'd earn $1 million annually, yet find it challenging to splurge more than $50 on a single purchase.'


 Rather than indulging in costly purchases, he continued to save his funds, realizing it would only hasten his path to retiring.


 "I progressed from saving 30 percent to 50 percent, then to 80 percent and even up to nearly 90 percent," Robinson stated.


 'This would have excited me even more, as I realized it sped up my journey toward eventually retiring.'


 As a tech leader with expertise in generative AI, he decided to resign after amassing a portfolio worth $3.5 million, even though he was earning $1.1 million annually.

<img data-document-id="cms/api/amp/image/AA1Cmqao" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cmqao.jpg"/>

 'Many believe it's insane for me to depart from AI when it holds such significance,' Robinson stated.


 'For me, it has always been crucial to concentrate on achieving my retirement objective so I can dedicate time to personal growth and ensure that I am contributing positively to making the world a better place.'


 Upon retiring, Robinson adopted a four percent withdrawal strategy, enabling him to generate an annual income of $185,000.


 This total amounts to roughly $15,400 per month; however, the ex-tech executive typically expends between $9,000 and $12,000 within that period.


 "If you maintain a disciplined and responsible approach towards [the money you have earned], then using it for experiences that simplify your life or positively influence others' lives — these actions are not detrimental," he emphasized.


 Robinson easily adjusted to life in Dubai, stating that it isn’t more costly than residing in major American cities he has previously lived in.


 "If I invest the same amount of money here, I usually have a far more enjoyable time. Alternatively, if I choose to spend less, I still receive an equally satisfying experience," he mentioned.


 Even though he lives under those conditions, Robinson stated that he wouldn’t be paying taxes in Dubai but intends to settle with the IRS because he’s an American residing overseas.

<img data-document-id="cms/api/amp/image/AA1Cmqar" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cmqar.jpg"/>

 Robinson is striving to adjust his investment portfolio, which includes multiple technology-based stocks.


 He likewise has a passion for DJing and is presently engaged in authoring a book along with crafting a podcast.


 "I am concentrating on my own spiritual development," he stated, mentioning that his current emphasis is on the present moment rather than speculating about the future.


 His work visa will end in July with his previous employer, and he intends to depart from Dubai after that.

Read more

From $5.15/Hr at Taco Bell to $3.5M by 39: My Simple Rule for Financial Freedom

Unknown investing, personal finance careers, personal finance retirement, retirement planning, work and pay

American Jamal Robinson joined the workforce with a single objective: to achieve retirement at the earliest opportunity. The individual, who is 40 years old, mentioned during his conversation that …

ありえない…〈月収23万円〉70歳夫、孫の成長を楽しみにしていたが突然死。悲しみに追い打ちをかける〈遺族年金額〉に65歳妻が絶望、納得できない〈年金ルール〉に「何かの間違いでは？」

Unknown culture, personal finance retirement, retirement, senior citizens, work and pay

<img data-document-id="cms/api/amp/image/AA1Cbrlo" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cbrlo.jpg"/>


 年金のルールは難しく、いくつもの“例外”が存在します。しかもそれが、よく起こりうることだから厄介です。万一のときに困らないよう、しっかりと押さえておきたいものです。

<h2>
 孫ファーストの老後…カッコいいところを見せたいと働いていたが
</h2>

 60歳で定年を迎えた上田浩一さん（仮名・70歳）。ちょうどその頃、長男に初孫が生まれました。それ以来、最大の楽しみは孫の成長。何かにつけて「孫のために」という言葉が口癖になりました。70歳を迎えた今も働いているのは、そのためです。


 
 「少しでもたくさんお小遣いをあげたい。カッコいいじいちゃんでいたいじゃないですか（笑）」
 


 70歳になった今でも月23万円、手取りで18万円ほどの給与を手にしています。妻・洋子さん（仮名・67歳）との2人暮らしでは、毎月3万円ほど余るとか。そのすべてを「孫貯金」と称して、コツコツと貯めていました。


 実は浩一さんと洋子さんは、孫との時間を楽しみにしながら、65歳を過ぎたあたりから終活を進めていました。その中で話の中心になったのがお金のこと。自分たちの生活だけであれば年金だけで十分。しかし孫のことまで考えたら、働けるうちは働いた方がいいだろう。そう考え、70代になった今も精力的に働いていました。


 そんな孫ファーストの老後は、ある日、突然終わりを迎えます。冬の寒い日、自宅の風呂場で倒れた浩一さん。そのまま帰らぬ人となりました。いわゆるヒートショックによる心筋梗塞。突然の不幸に、洋子さんの悲しみは深く、なかなか現実を受け入れることができなかったといいます。


 時間だけが流れるなか、「いつまでもこのままではいけない」と、洋子さんは自らを奮い立たせます。その背中を押してくれたのも、かわいい孫の存在でした。まずは滞っていた手続きを次々とこなしていきます。そのなかにあったのが年金の手続き。年金受給者であれば、亡くなってから14日以内（厚生年金の場合は10日以内）に年金受給権者死亡届（報告書）の提出が必須です。浩一さんは厚生年金加入者だったので、洋子さんは遺族厚生年金の請求が行えるはずでした。ちなみに遺族年金の請求は、死亡から5年で時効となります。


 時間に余裕はあるものの、早い方がいいだろうと手続きを行うことにしました。終活について話をした際、遺族年金についても話題にあがっていました。洋子さんはどこかで「遺族年金があれば、万一のときに何とかなるだろう」と思っていたといいます。浩一さんが長年にわたって厚生年金に加入していたという安心感もありました。


 さらに浩一さんからは「年金の繰下げで年金は増えている」と聞かされていました。年金の繰下げは、受取開始時期を66～75歳までの間で遅らせることで、年金受取額が増額になる制度。1カ月遅らせるごとに0.7％増額となります。浩一さんの場合、亡くなる時点で44.1％の増額。65歳時点で「月18万円はもらえる」といっていたので、26万円弱に増えていたのです。

<h2>
 遺族年金…期待と現実のギャップ
</h2>

 
 「夫は月に26万円はもらえるはずだったのだから、遺族年金はそれなりにもらえるだろう」
 
 。そんな確信に近いものを感じながら、洋子さんは遺族年金の請求手続きを進めます。しかし実際の遺族年金額は、想定外の少なさでした。


 
 「なぜ、こんなに少ないんですか？ 夫は70歳まで働いていたんですよ。その間、厚生年金にも加入していたのに」
 
 。説明を求めて訪れた年金事務所で、洋子さんは声を荒らげます。対応してくれた職員は、「年金のルール」について説明をしてくれました。


 ①遺族厚生年金の年金額は、死亡した人の老齢厚生年金の報酬比例部分の4分の3の額。


 ②ただし、65歳以上で老齢厚生年金を受け取る権利がある人の場合、「死亡した人の老齢厚生年金の報酬比例部分の4分の3の額」と「死亡した人の老齢厚生年金の報酬比例部分の額の2分の1の額と自身の老齢厚生年金の額の2分の1の額を合算した額」を比較し、高い方の額となる。


 ③さらに自分自身の老齢厚生年金は全額支給となり、遺族厚生年金は老齢厚生年金に相当する額の支給が停止となる。


 ④繰下げ受給の仕組みは遺族年金には適用されない。


 つまり遺族年金の計算をする場合、「浩一さんが65歳で老齢厚生年金を受け取ったら」がベースになるということ。浩一さんの場合、ベースとなる遺族厚生年金は8.4万円となります。さらに洋子さんには会社員時代があり、1.5万円ほどの老齢厚生年金を受け取ることができました。結果、遺族厚生年金は想像していたよりもずっと少ない、月6.9万円ほどになるということでした。


 
 ――そんな、ありえない
 


 そう思っても、ルールはルール。仕方がないこととはいえ、なかなか納得することは難しく、「何かの間違いではないか？」と何度も自問自答したといいます。遺族年金に対する期待が大きすぎたため、現実とのギャップにただ何とも言えない感情だけが心に広がりました。


 年金制度のルールは複雑で、時に厳しさを感じるものかもしれません。正しい理解があれば、洋子さんのようにどこか淡い期待を抱かずにすみます。


 ［参考資料］


 日本年金機構『遺族厚生年金（受給要件・対象者・年金額）』『年金の繰下げ受給』

ありえない…〈月収23万円〉70歳夫、孫の成長を楽しみにしていたが突然死。悲しみに追い打ちをかける〈遺族年金額〉に65歳妻が絶望、納得できない〈年金ルール〉に「何かの間違いでは？」

Unknown culture, personal finance retirement, retirement, senior citizens, work and pay

年金のルールは難しく、いくつもの“例外”が存在します。しかもそれが、よく起こりうることだから厄介です。万一のときに困らないよう、しっかりと押さえておきたいものです。孫ファーストの老後…カッコいいところを見せたいと働いていたが 60歳で定年を迎えた上田浩一さん（仮名・70歳）。ちょうどその頃、長男に初孫が生まれました。それ以来、最大の楽しみは孫の成長。何かにつけて「孫のために」という言…

まさか、夢だと言ってくれ…「年金月18万円」75歳男性、「コツコツと貯めた 2,000万円」が老後10年で底をつく大誤算。きっかけは48年間連れ添った愛妻の死

Unknown money, personal finance, personal finance retirement, retirement planning, wealth

<img data-document-id="cms/api/amp/image/AA1Cbcd4" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Cbcd4.jpg"/>


 老後資金2,000万円不足問題のインパクトから、「老後のために2,000万円は貯める！」と目標を定めている人は多いようです。しかし、2,000万円の貯金があるからといって、老後の安心は絶対かといえば、そのようなことはありません。

<h2>
 妻と過ごすはずだった、安泰の老後
</h2>

 年金不安から資産運用が当たり前になりつつあるなか、最終的な目標額はいくらなのでしょうか。金融広報中央委員会『家計の金融行動に関する世論調査（二人以上世帯）』によると、金融資産目標額は平均で3,014万円。中央値は1,500万円でした。年齢別にみていくと、60代で平均3,397万円、中央値は2,000万円。70代では平均2,723万円で、中央値は2,000万円。一時、老後資金2,000万円不足と騒がれていました。その余波でしょうか、老後を見据えて「2,000万円」をひとつの目標にしていると推測されます。


 75歳の原和夫さん（仮名）もそのひとり。長年会社員として働き、退職金とコツコツ貯めた預貯金を合わせ、65歳の時点で老後資金は約2,000万円を確保していました。


 「ひとり1,000万円、夫婦であれば2,000万円あれば、老後は安心だと思っていたんです」


 65歳から受け取り始めた年金は月18万円ほど。その3年後には妻も年金を受け取り始め、派手な暮らしではないものの、妻とふたり、穏やかな老後を送っていました。


 しかし、結婚48年を迎えて、妻が68歳で急逝。そこから、原さんの生活は大きく狂い始めます。最初に家計を大きく圧迫したのは、自宅の修繕費でした。


 
 「持ち家だったので、住居費の心配はないと思っていました。でも、築35年ともなると、あちこちガタがくるんですよ」
 


 特に深刻だったのは、水回りと屋根の劣化。そこに追い打ちをかけるように大型台風の襲来。それによりキッチンや浴室の配管から水漏れが発生し、屋根瓦の一部も剥がれました。修理を後回しにするわけにもいかず、見積もりを取ると、なんと約500万円。痛い出費でしたが、長年妻と過ごしたマイホーム。いつまでもここで住み続けたい……そう考えると仕方のない出費でした。

<h2>
 妻に先立たれ、崩れ始めた老後プラン
</h2>

 さらに、妻に先立たれひとり暮らしになったことで、日常の生活費もじわじわと増えていきました。家事はすべて妻に任せきりだった原さんは家事力ゼロ。次第に家のなかは散らかり放題。洗濯はもちろん、食事も自分で作ることはできません。乱れていくばかりの日常をどうにかしようと、家事代行サービスを利用するようになりました。さらに外食の回数も増え、妻とふたり暮らしのときよりもかさむようになったのです。そのような生活により、毎月10万～15万円程度を貯金から取り崩し。


 そこへ追い打ちをかけたのが、健康の問題でした。「加齢とともに、病院に行く機会が増えました。持病の薬代に加え、歯の治療や白内障の手術など、思った以上にお金がかかるんです」。こうした想定外の出費が続き、原さんの貯蓄は右肩下がり。


 焦った原さんは、ある決断をします。世間では「資産運用」ブーム。この流れに乗れば、資産を増やすことができるかもしれない……何とも安直な理由で投資をスタートさせます。


 当初は、銀行の勧めで投資信託を購入。しかし値動きが思った以上に激しく、不安になった原さんは、途中で売却。結果的に、数十万円の損失を出してしまいました。それでも諦めきれず、今度は個別株に手を出します。「高配当株なら年金の足しになる」との触れ込みを信じましたが、株価の変動に一喜一憂する日々が続き、また途中で売却。結局、利益を出すどころか損失ばかりが積み重なり、10年前に2,000万円あった貯蓄は、ほぼ底をついてしまったのです。


 
 「まさか、夢だと言ってくれ……」
 


 70代半ばにして、生活レベルを大幅に下げざるを得ない状況に直面している原さん。


 
 「年金18万円だけで、この先の生活を賄わないといけません。でも家の維持費もかかるだろうし、医療費のことも考えないといけない。不安しかないですね」
 


 原さんのケースは決して特殊なものではありません。老後の想定外の出費は、誰にでも起こりうること。特に、自宅の修繕費や医療費は、思った以上にかかることが多いといいます。さらに原さんの場合、未経験ながら投資に手を出し、損失をさらに拡大させました。「まさか、こんなはずでは……」と後悔しないために。老後資金の準備は、想定以上の余裕をもって考えておくことが大切なのかもしれません。


 ［参考資料］


 金融広報中央委員会『令和5年 家計の金融行動に関する世論調査（二人以上世帯）』

まさか、夢だと言ってくれ…「年金月18万円」75歳男性、「コツコツと貯めた 2,000万円」が老後10年で底をつく大誤算。きっかけは48年間連れ添った愛妻の死

Unknown money, personal finance, personal finance retirement, retirement planning, wealth

老後資金2,000万円不足問題のインパクトから、「老後のために2,000万円は貯める！」と目標を定めている人は多いようです。しかし、2,000万円の貯金があるからといって、老後の安心は絶対かといえば、そのようなことはありません。妻と過ごすはずだった、安泰の老後年金不安から資産運用が当たり前になりつつあるなか、最終的な目標額はいくらなのでしょうか。金融広報中央委員会『家計の金融行動に…

Should You Take Superannuation as a Lump Sum or an Income Stream? Find Out Which is Better!

Unknown income, investing, money, personal finance retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1uAzQE" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1uAzQE.jpg"/>

 Australians heading into
 retirement
 face a tough decision on how to access their hard-earned
 superannuation
 .


 The question is: Should you opt for a lump sum, an income stream, or a combination of both?


 And just like every broad-based question in life, it circles back to the cliched but truthful answer: "It depends".


 That's not ideal for someone seeking a more definitive answer, but what you can do is understand the pros and cons of both routes to obtaining your money. Here's a breakdown to help you make an informed choice.

<h2 class="wp-block-heading" id="h-options-for-accessing-superannuation">
 Options for accessing superannuation
</h2>

 When you retire, you can withdraw your super as a lump sum, convert it into an income stream, or combine the two. Each approach offers unique benefits and trade-offs.


 A single payment provides you full control over your complete superannuation funds right away, allowing you to utilize them for settling debts, making investments, or indulging in well-desired extravagances.


 
 Lump sumsÂ are typically
 tax-free for people aged 60 or above
 . However, not
 
 All funds provide this feature.


 As per MoneySmart, this superannuation choice might attract you if you carry high-interest debts or plan to make substantial one-time buys, like reducing the size of your house.


 However, investing significant sums initially might drain your retirement savings more quickly than anticipated, possibly resulting in reduced finances during your later years.


 Investing beyond your superannuation could subject you to increased tax rates compared to what’s offered inside the super system, particularly when trading shares or real estate.


 It largely hinges on what you project your yearly living costs will amount to. These projections should encompass elements such as vacations and doctor visits, among others.
 what type of retirement
 you wish for.


 The viability of this option can also hinge on your ultimate superannuation account balance. Those with larger balances may find this choice more appealing.

<h2 class="wp-block-heading" id="h-what-about-an-income-stream">
 How about generating an income stream?
</h2>

 When you have a steady flow of income, your superannuation gets transformed into consistent payouts, much like receiving a wage. These disbursements keep coming during your retirement, akin to a sinking fund, though they might be put back into investments as well.


 This approach provides a consistent earnings stream, tax-free investment gains, and might assist in safeguarding your retirement funds for future years.


 Revenue sources offer significant flexibility, enabling you to select payment schedules and amounts while adhering to minimum withdrawal requirements.


 Nevertheless, the maximum amount you can move into a retirement-phase account is limited to $1.9 million due to the transfer balance cap.

<h2 class="wp-block-heading" id="h-por-que-no-los-dos-why-not-both">
 Why not both?
</h2>

 A lot of people after retiring choose a blend of these options. They might withdraw part of their superannuation as a lump sum to handle upfront costs, while keeping the rest invested in an income stream for steady, ongoing financial support.


 It seems like you're getting everything at once, but there are some catches.


 Money continues to be utilized within the superannuation system, which means these funds may not be easily accessible when required. Others could find alternative investment opportunities where the capital might serve them better financially.


 Once again, this depends on the specific circumstances, but there are several methods to tap into the revenue stream, such as
 account-based stream and annuities.


 As stated by the Australian Tax Office, several tax offsets apply to the income portion as well.

<h2 class="wp-block-heading" id="h-superannuation-takeaway">
 Superannuation takeaway
</h2>

 Your choice between taking your superannuation as a one-time lump sum, an ongoing income stream, or combining both will depend on your individual situation.


 Every choice comes with advantages and disadvantages, making it essential to weigh them all to guarantee your superannuation aids in fulfilling your retirement aspirations.


 Regardless of the situation, having all the key information can assist in making sound choices.


 The post
 Is it preferable to withdraw your superannuation as a one-time lump sum or an ongoing income stream?
 appeared first on
 The Motley Fool Australia
 .

<div class="pitch-snippet">
 <h2>
 Should you invest $1,000 in S&P/ASX 200 right now?
 </h2>
 
 Before you buy S&P/ASX 200 shares, consider this:
 
 
 Motley Fool investing expert Scott Phillips just revealed what he believes are the
 
 5 best stocks
 
 for investors to buy right now... and S&P/ASX 200 wasn't one of them.
 
 
 The online investing service heâ€™s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
 
 
 And right now, Scott thinks there are 5 stocks that may be better buys...
 
 
 See The 5 Stocks
 
 *Returns as of 7 November 2024
 
 
</div>

 
 More reading
 

<ul>
 <li>
 Here are the top 10 ASX 200 shares today
 </li>
 <li>
 The ASX 200 Index is on its way to another all-time high today. Here's why
 </li>
 <li>
 Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential
 </li>
 <li>
 5 things to watch on the ASX 200 on Friday
 </li>
 <li>
 Here are the top 10 ASX 200 shares today
 </li>
</ul>

 Motley Fool
 contributor
 Zach Bristow
 The Motley Fool Australia does not hold shares in any of the companies discussed. Additionally, Motley Fool Holdings Inc., which owns The Motley Fool Australia, also does not have positions in these stocks. Furthermore, The Motley Fool as an organization maintains no stake in any of the aforementioned stocks.
 disclosure policy
 This article includes solely general investment guidance (covered under AFSL 400691). Authored by Scott Phillips.

Should You Take Superannuation as a Lump Sum or an Income Stream? Find Out Which is Better!

Unknown income, investing, money, personal finance retirement, retirement planning

Australians heading into retirement face a tough decision on how to access their hard-earned superannuation . The question is: Should you opt for a lump sum, an income stream, or a combination …

Here's How Your Social Security Benefits Compare at Ages 62, 67, and 70

Unknown personal finance retirement, retirement, retirement planning, senior citizens, social security

Over eighty years, Social Security has provided monthly benefits to those who have retired. Although these payments aren’t enriching anyone, they’ve become essential for many retirees.


 For the past 23 consecutive years, Gallup has carried out a survey to assess the degree of reliance retired workers have on their received incomes.
 Social Security
 These surveys indicate that between 80% to 90% of retirees depend on their regular monthly payment to help with their living costs.


 
 Start Your Mornings Smarter!
 
 Wake up with
 
 Breakfast news
 
 In your inbox each trading day.
 
 
 Sign Up for Free »
 
 


 An independent study conducted by the Center on Budget and Policy Priorities revealed that without Social Security, the poverty rate among adults aged 65 and older would be approximately four times greater — standing at 10.2% as of 2022 with Social Security compared to an estimated 38.7% if not for Social Security.


 Hence, maximizing benefits from Social Security will be crucial for the financial health of most upcoming retirees.

<div class="image">
 <img data-document-id="cms/api/amp/image/AA1wj7A4" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1wj7A4.jpg"/>
</div>

 However, to get the most out of your Social Security benefits, you must first grasp how these payments are determined. Only after understanding this will you be able to
 understand the significance of your declared age
 , and how choosing to collect at an earlier age (62), a mid-point age (67), or a later age (70) could affect your monthly benefits.

<h2>
 The calculation of your monthly Social Security benefit involves these four elements.
</h2>

 Even though Social Security occasionally has unexpected elements for beneficiaries — were you aware that Social Security benefits may be subject to taxation at the federal level?
 in addition to nine states
 The four elements utilized by the Social Security Administration (SSA) to determine your monthly benefit amount are clear-cut:

<ol>
 <li>
 Work history
 </li>
 <li>
 Earnings history
 </li>
 <li>
 Full retirement age
 </li>
 <li>
 Claiming age
 </li>
</ol>

 Your job performance and financial record are closely linked. When determining your monthly payout, the Social Security Administration considers your top 35 years of earnings adjusted for inflation. Earning a higher average wage or salary over your career—note that investment income does not factor in here—increases your chances of getting a larger monthly benefit once you retire.


 However, irrespective of your annual income, you will face penalties if your work record falls short of 35 years. The SSA will add zeros for each year below 35 that you haven’t worked when calculating your benefits. To ensure your Social Security payments help cover living expenses after retiring, aim to log at least three decades and five years of employment.


 The third factor, known as your full retirement age, is
 based on the year of your birth
 It signifies the age at which you qualify to receive your full retired-worker benefit, and this aspect is the sole element beyond our control.


 Lastly, but without being of lesser importance,
 Your stated age can greatly influence the fluctuation of both your monthly and lifetime payout amounts.
 Although you may start receiving retirement benefits as young as 62 years old, there’s a financial motivation to be more patient. Specifically, each additional year an individual delays claiming their benefits from age 62 through age 70 can increase their payment amount by approximately 8%. The chart illustrates how these increments vary based on when your full retirement age falls.

<table>
 <tr>
 <td class="xl65">
 
 Birth Year
 
 </td>
 <td class="xl65">
 
 Age 62
 
 </td>
 <td class="xl65">
 
 Age 63
 
 </td>
 <td class="xl65">
 
 Age 64
 
 </td>
 <td class="xl65">
 
 Age 65
 
 </td>
 <td class="xl65">
 
 Age 66
 
 </td>
 <td class="xl65">
 
 Age 67
 
 </td>
 <td class="xl65">
 
 Age 68
 
 </td>
 <td class="xl65">
 
 Age 69
 
 </td>
 <td class="xl65">
 
 Age 70
 
 </td>
 </tr>
 <tr>
 <td>
 1943-1954
 </td>
 <td class="xl64">
 75%
 </td>
 <td class="xl64">
 80%
 </td>
 <td class="xl63">
 86.7%
 </td>
 <td class="xl63">
 93.3%
 </td>
 <td class="xl64">
 100%
 </td>
 <td class="xl64">
 108%
 </td>
 <td class="xl64">
 116%
 </td>
 <td class="xl64">
 124%
 </td>
 <td class="xl64">
 132%
 </td>
 </tr>
 <tr>
 <td>
 1955
 </td>
 <td class="xl63">
 74.2%
 </td>
 <td class="xl63">
 79.2%
 </td>
 <td class="xl63">
 85.6%
 </td>
 <td class="xl63">
 92.2%
 </td>
 <td class="xl63">
 98.9%
 </td>
 <td class="xl63">
 106.7%
 </td>
 <td class="xl63">
 114.7%
 </td>
 <td class="xl63">
 122.7%
 </td>
 <td class="xl63">
 130.7%
 </td>
 </tr>
 <tr>
 <td>
 1956
 </td>
 <td class="xl63">
 73.3%
 </td>
 <td class="xl63">
 78.3%
 </td>
 <td class="xl63">
 84.4%
 </td>
 <td class="xl63">
 91.1%
 </td>
 <td class="xl63">
 97.8%
 </td>
 <td class="xl63">
 105.3%
 </td>
 <td class="xl63">
 113.3%
 </td>
 <td class="xl63">
 121.3%
 </td>
 <td class="xl63">
 129.3%
 </td>
 </tr>
 <tr>
 <td>
 1957
 </td>
 <td class="xl63">
 72.5%
 </td>
 <td class="xl63">
 77.5%
 </td>
 <td class="xl63">
 83.3%
 </td>
 <td class="xl64">
 90%
 </td>
 <td class="xl63">
 96.7%
 </td>
 <td class="xl64">
 104%
 </td>
 <td class="xl64">
 112%
 </td>
 <td class="xl64">
 120%
 </td>
 <td class="xl64">
 128%
 </td>
 </tr>
 <tr>
 <td>
 1958
 </td>
 <td class="xl63">
 71.7%
 </td>
 <td class="xl63">
 76.7%
 </td>
 <td class="xl63">
 82.2%
 </td>
 <td class="xl63">
 88.9%
 </td>
 <td class="xl63">
 95.6%
 </td>
 <td class="xl63">
 102.7%
 </td>
 <td class="xl63">
 110.7%
 </td>
 <td class="xl63">
 118.7%
 </td>
 <td class="xl63">
 126.7%
 </td>
 </tr>
 <tr>
 <td>
 1959
 </td>
 <td class="xl63">
 70.8%
 </td>
 <td class="xl63">
 75.8%
 </td>
 <td class="xl63">
 81.1%
 </td>
 <td class="xl63">
 87.8%
 </td>
 <td class="xl63">
 94.4%
 </td>
 <td class="xl63">
 101.3%
 </td>
 <td class="xl63">
 109.3%
 </td>
 <td class="xl63">
 117.3%
 </td>
 <td class="xl63">
 125.3%
 </td>
 </tr>
 <tr>
 <td>
 1960 or later
 </td>
 <td class="xl64">
 70%
 </td>
 <td class="xl64">
 75%
 </td>
 <td class="xl64">
 80%
 </td>
 <td class="xl63">
 86.7%
 </td>
 <td class="xl63">
 93.3%
 </td>
 <td class="xl64">
 100%
 </td>
 <td class="xl64">
 108%
 </td>
 <td class="xl64">
 116%
 </td>
 <td class="xl64">
 124%
 </td>
 </tr>
</table>

 Data source: Social Security Administration.

<h2>
 What is the typical Social Security payment amount at age 62, age 67, and age 70?
</h2>

 Even though each year from the standard collection span of 62 to 70 offers distinct pros and cons,
 Three claimed age groups are expected to become particularly favored moving forward.
 62, 67, and 70.


 Let’s quickly explore the advantages and disadvantages of filing for benefits at these three different ages, and then examine what the typical recipient receives monthly when they claim at 62, 67, and 70 years old.

<ul>
 <li>
 
 
 What's the advantage of collecting benefits at age 62?
 
 The attraction of receiving benefits at age 62 lies in not needing to hold off before accessing your entitlements. Additionally, there’s the potential for
 extensive reductions in Social Security benefits by 2033
 Receiving your payment immediately could be seen as a strategy to avoid potential decreases.
 
 
 Conversely, your payment will have a permanent reduction of 25% to 30% once you start receiving benefits at age 62 (the exact percentage depends on your birth year). Furthermore, you might face additional penalties for filing early.
 like the retirement earnings test
 This enables the SSA to deduct part or all of your benefits based on your earnings.
 
 </li>
 <li>
 
 What is the reason for collecting at age 67?
 
 This might swiftly turn into the favored claiming age due to the fact that 67 is considered the full retirement age for those born in 1960 or later, which includes a majority of today’s working population. Starting benefits at this age ensures there will be no decrease in your monthly benefit amount. However, the drawback of opting for this age is that should you live well past your eighties, retrospectively speaking, you may end up foregoing substantial Social Security payments.
 </li>
 <li>
 
 What is the purpose of collecting at age 70?
 
 Claiming benefits at age 70 ensures that you receive the highest possible monthly payment, increasing it by 24% to 32% compared to what you'd get at your full retirement age, depending on when you were born. However, this strategy doesn’t ensure that you’ll live sufficiently long to fully capitalize on these higher lifetime payouts from Social Security.
 </li>
</ul>

 Having gained insight into the advantages and disadvantages of these three filing ages, we can now look at the typical Social Security benefits received at age 62, 67, and 70.


 Each year, the SSA's Office of the Actuary publishes a detailed analysis outlining the
 mean monthly assistance for retired workers aged from 62 up to those over 99
 . Bear in mind this information is derived from
 age
 Of retirees who stopped working as of December 2023, this doesn’t necessarily reflect the age at which they started receiving benefits, unless they were 62 years old.


 Given these points, approximately 590,000 residents live in the area.
 The typical retired worker aged 62 received an average monthly benefit of $1,298.26.
 In December 2023, approximately 2.92 million retired individuals received payments.
 mean payment of $1,883.50 upon reaching 67 years old
 Finally, approximately 3.01 million recipients who have retired are benefiting from this program.
 saved an average advantage of $2,037.54 upon reaching 70 years old.
 .


 Across the entire range of the conventional claiming spectrum, those who waited until they were 70 years old received, on average, 57% more compared to individuals who started collecting benefits at the earliest opportunity.

<div class="image">
 <img data-document-id="cms/api/amp/image/AA1wiWeK" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1wiWeK.jpg"/>
</div>
<h2>
 Statistically speaking, there
 is
 an older supervisor citing typical retirement ages
</h2>

 Given the significant differences in monthly benefits, you may be questioning whether choosing certain ages within the typical claiming window offers future retirees an advantage for optimizing their Social Security income. A thorough statistical study reveals that there indeed is such an optimal age.


 In 2019, researchers from United Income published a study,
 The Overlooked Retirement Plan Right Before Our Eyes
 , analyzed the claim decisions of 20,000 retirees utilizing data from the University of Michigan’s Health and Retirement Study. The objective was to determine whether any particular age could maximize Social Security benefits. Here, an “optimal” distribution refers to one that would yield the highest benefit amount.
 lifetime
 (key word!) income collection.


 As one would anticipate, this comprehensive study revealed that merely 4% of the 20,000 retirees analyzed had filed for benefits at the ideal time. Given that our life expectancy is unknown beforehand, there's
 There will always be some level of uncertainty involved.
 When reaching our claim determination.


 Moreover, each of us follows our distinct journey towards retirement. Our individual mix of financial requirements, available retirement savings options, marital situation, tax consequences, personal well-being, among others factors, can vary greatly from person to person. Given this diversity, there isn’t a single plan that suits everyone, which naturally leads to differences in when and how people decide to claim their benefits.


 However, the more important find is the nearly perfect inversion between actual and optimal claims. Although 79% of the 20,000 retired workers began receiving their benefit from ages 62 through 64,
 Only 8% of the claims in this range were eventually found to be optimal.
 .


 On the flip side, even though just a tiny fraction of retirees delayed claiming their Social Security benefits until they reached age 70, this still occurred.
 ideal for 57%, which amounts to 20,000 retirees examined
 .


 To be fair, this does not imply that every future retiree needs to wait until they turn 70 before starting to collect benefits. Individuals who suffer from one or more long-term illnesses that could reduce their life expectancy might have valid reasons for opting to receive payments at an earlier age.


 However, according to this comprehensive statistical assessment, being patient is likely to yield substantial rewards for most future retirees. This is an important consideration should you anticipate relying on Social Security, in whatever role, to cover your expenses during retirement.

<h2>
 The $
 
 22,924
 
 The Social Security benefit many seniors entirely miss out on.
</h2>

 If you’re similar to many Americans, you might be lagging several years—or even more—behind on saving for retirement. However, some lesser-known “ Social Security tips” may assist in increasing your post-retirement earnings. For instance: one simple strategy has the potential to net you an extra $
 
 22,924
 
 More every year! After mastering strategies to optimize your Social Security benefits, we believe you can retire with confidence and achieve the peace of mind everyone seeks.
 Just click here to find out how you can learn more about these tactics.


 
 Check out the "Social Security secrets" »
 


 The Motley Fool has a
 disclosure policy
 .

Here's How Your Social Security Benefits Compare at Ages 62, 67, and 70

Unknown personal finance retirement, retirement, retirement planning, senior citizens, social security

Over eighty years, Social Security has provided monthly benefits to those who have retired. Although these payments aren’t enriching anyone, they’ve become essential for many retirees. For the past…

Retiring at 67 with $3M: Do You Need a Financial Planner to Protect Your Nest Egg?

Unknown financial advice, financial planning, personal finance retirement, retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1BxpVj" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1BxpVj.jpg"/>

 A 2024 CPP Investments
 survey found that
 Canadians believe they will require $900,000 for a comfortable retirement, marking a 29% rise compared to the previous year.


 However, according to Statistics Canada from 2024
 report revealed
 The median retirement savings of Canadians stands at $573,040. This indicates that most retirees face a significant shortfall.


 If you’ve retired with a $3 million portfolio, you're certainly doing better than most. You not only possess far greater assets compared to an average Canadian retiree but also surpass the recommended $900,000 per individual needed for a comfortable retirement.


 However, you might be pondering whether it’s worth hiring a financial planner to assist with managing your retirement funds. The reality is that there are both advantages and disadvantages to seeking professional financial assistance.

<h2>
 Don't Miss
</h2>
<ul>
 <li>
 The following five magical financial steps can aid in climbing Canada's wealth ladder by 2025, with each action being completable within mere minutes.
 
 Here's how
 
 </li>
 <li>
 Discover the top banking promotions, account incentives, and cashback deals with us.
 
 top new banking account promotions
 
 Don't let these time-limited offers slip away!
 </li>
 <li>
 Emergency veterinary expenses can soar up to $4,000 – however, with adequate insurancecoverage,
 
 you can safeguard your pet without draining your finances
 
 </li>
</ul>
<h2>
 Using a financial planner
</h2>

 If you possess $3 million in assets, own your home outright, and do not have any significant financial worries, you may think that hiring an expert isn’t necessary. However, there’s good cause for reconsidering this assumption.
 25% of Canadians
 possess a financial advisor or planner, according to research conducted by CIBC and FP Canada.


 The advantage of collaborating with a financial advisor is having someone knowledgeable who remains unemotional about your finances providing guidance on managing your resources. This can be incredibly valuable, particularly when unexpected challenges arise in life.


 Your financial situation might currently be strong, but what happens if your life changes or your health deteriorates, leading to the need for prolonged medical support?


 If you lack insurance coverage, the cost of hiring a home health aide might range from approximately $3,500 to $30,000 each month.
 The Scotia Wealth Management report discovered
 A financial advisor or planner can assist you not just in preparing for such expenses, but also in managing them when they come up.


 Moreover, even though you've demonstrated considerable knowledge about savings and investments by accumulating $3 million before retiring, there might still be gaps in your investment strategy. Consulting with a financial advisor could assist in identifying these areas and ensuring that your portfolio is structured both to generate revenue and endure significant economic downturns or high inflation periods.


 Additionally, with $3 million at your disposal, you might consider leaving an inheritance behind. However, keep in mind that the worth of $3 million now won’t remain the same as $3 million later, particularly if inflation rises sharply. Consulting with a financial advisor will help you explore various estate planning strategies, enabling you to make well-informed choices about the kind of heritage you want to pass along.


 Ultimately, collaborating with a financial advisor might assist you in feeling more at ease during your later years; this shifts the responsibility from you being the expert to someone who keeps up with the latest information.

<h2>
 Managing your finances solo
</h2>

 A clear drawback of collaborating with a financial advisor is the extra expense incurred. This cost might differ based on various factors such as the specific individual you choose, your location, and the fee model utilized by your advisor. Should you handle your finances independently, you would avoid paying these professional charges altogether.


 Suppose a financial advisor charges you a fee equivalent to 1% of your total assets under management. In the case of a $3 million portfolio, this amounts to an annual charge of $30,000 for assistance that might be unnecessary.


 Certainly, numerous financial advisors earn compensation based on a percentage of the assets they manage. This incentivizes them to expand your investment portfolio further so their earnings increase accordingly. However, upon retirement, what might matter most isn’t necessarily growing your wealth but ensuring a consistent stream of income. If this stability is already achieved, then hiring an advisor could seem less necessary.


 If you have successfully built and managed your investment portfolio over the years, you might be well-prepared to keep doing so—particularly if you are an astute investor attuned to market trends and recognize the significance of diversifying your assets.


 Moreover, although a financial advisor may provide advice on estate planning, you'll generally require an attorney to draft a will or trust (or whichever instrument you choose for passing down an inheritance). Thus, even though a financial expert might help guide you towards your preferred choice, you're likely facing additional legal fees separately.


 Before finalizing your choice, consider meeting with one or two advisors to get their input. However, if you've reached $3 million and are handling things effectively, hiring additional assistance might not be necessary right now. Ensure that prior to making significant financial decisions, you gather all the information available. In essence, you're acting as your own advisor.

<h2>
 Read More
</h2>
<ul>
 <li>
 Unforeseen medical expenses can accumulate rapidly, even within Canada’s healthcare framework.
 
 cost-effective health coverage
 
 to safeguard you and those dear to you
 </li>
</ul>
<h4>
 Sources
</h4>

 1.
 CPP Investments:
 Almost two out of every three Canadians express concerns about their retirement savings, according to a recent survey released on October 30, 2024.


 
 2.
 Statistics Canada:
 Economic Family Type Assets and Debts by Age Group for Canada, Provinces, and Selected Census Metropolitan Areas, Survey of Financial Security (in millions) (October 29, 2024)
 


 3.
 Cision:
 A vast majority of Canadians are tackling financial planning independently according to the CIBC and FP Canada™ Survey (multiplied by 1,000,000) (November 27, 2023).


 
 4.
 Scotia Wealth Management:
 Why staying at home as we age remains out of reach for numerous Canadians—and what can be done about it (January 9, 2024)
 


 This article
 At age 67, after retiring with a $3 million investment portfolio and owning a home free of mortgage, would it be worthwhile to hire a financial advisor to guarantee our savings will endure throughout retirement?
 originally appeared on Money.ca

<h2>
 What To Read Next
</h2>
<ul>
 <li>
 In 2024, Warren Buffett shifted his focus to include Canadian stocks — here’s
 
 Three tactics enabling you to invest akin to an expert
 
 </li>
 <li>
 Want to boost your retirement savings from $183K to $833K? Consider these essential tactics:
 
 update your retirement savings
 
 </li>
 <li>
 Boost your savings and reduce taxes — look into this option
 
 right investment account
 
 For your monetary objectives today
 </li>
</ul>

 The content of this article serves solely as information and must not be interpreted as advice. No warranties of any sort are provided with this material.

Retiring at 67 with $3M: Do You Need a Financial Planner to Protect Your Nest Egg?

Unknown financial advice, financial planning, personal finance retirement, retirement, retirement planning

A 2024 CPP Investments survey found that Canadians believe they will require $900,000 for a comfortable retirement, marking a 29% rise compared to the previous year. However, according to Statist…

What's the Ideal Superannuation Balance for Your Age in Australia?

Unknown investing, money, personal finance, personal finance retirement, personal finance saving spending

<img data-document-id="cms/api/amp/image/AA19bW4N" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA19bW4N.jpg"/>

 To address this query about our system
 superannuation
 Balance, I believe it's most effective to approach it from the opposite direction.


 Firstly, let's look at how much we need to set aside for a comfortable lifestyle.
 retirement
 . After that, we can determine if our retirement funds are adequately on target.


 As per the latest updates to
 AFSA Retirement Standard
 Single Australians require $595,000 in their superannuation fund by the time they reach 67 years old for a comfortable retirement. For couples, this amount is $690,000.


 These figures presuppose that we own our house, get a portion of the pension, and that our superannuation savings are depleted and reinvested at an annual growth rate of 6%.


 According to AFSA, a comfortable retirement involves covering basic needs along with expenses such as private health insurance, fitness activities, free time pursuits, dining out occasionally, taking at least one domestic vacation annually, and enjoying an international trip every seven years.


 AFSA estimates that all of this amounts to $51,814 annually for individuals and $73,031 for couples.

<h2 class="wp-block-heading" id="h-are-your-superannuation-savings-on-track-for-your-age">
 Is your superannuation saving aligned with your age group expectations?
</h2>

 The age pension along with superannuation are the
 The two most prevalent types of income sources for those retired.
 As stated by the Australian Bureau of Statistics. This highlights their significance for you in your later years.


 Let's address superannuation first.


 The instrument we will employ to determine if your superannuation balance is appropriate for your age is the
 Super Balance Detective Calculator
 On the Super Guru website.


 If you're among those born from 1958 to 2003, you can utilize this tool to determine whether your current superannuation balance aligns with the AFSA benchmark for a comfy retirement.


 Here are some examples.

<ul class="wp-block-list">
 <li>
 For individuals who turned 30 years old in 1994, their superannuation balance ought to amount to $66,500.
 </li>
 <li>
 For individuals who turned 40 years old this year (born in 1984), their superannuation balance ought to amount to $168,000.
 </li>
 <li>
 For individuals who turned 50 years old this year (born in 1974), their superannuation savings ought to amount to $296,000.
 </li>
 <li>
 For individuals who turned 60 this year (born in 1963), their superannuation balance ought to amount to $469,000.
 </li>
</ul>

 Should your superannuation balance match the figures provided by the Super Guru calculator, you will be well-positioned to reach the necessary $595,000 milestone by the time you turn 67 as a single individual aiming for a comfortable retirement supplemented by a partial government pension.


 Let's now discuss the requirements for qualifying for a partial or full-aged pension.

<h2 class="wp-block-heading" id="h-do-you-qualify-for-the-age-pension">
 Are you eligible for the age pension?
</h2>

 Australians qualify for the age pension once they reach their '
 retirement age
 For individuals born on or after 1 January 1957, the retirement age stands at 67 years old.


 You're only eligible for the pension if you meet the criteria provided.
 assets
 and
 income
 tests outlined by the government.


 For the assets test, to be eligible for the complete age pension, single homeowners cannot have over $314,000 worth of assets excluding their home. Conversely, single individuals without a home must not possess more than $566,000 in total assets.


 The threshold for receiving a part-pension for singles who own homes stands at assets worth $695,500, whereas for those who do not own homes, the limit is set at $947,500.


 For the complete age pension eligibility, homeowner couples cannot have more than $470,000 worth of assets excluding their residence. Non-homeowning couples must keep their additional assets below $722,000.


 For a partial pension, the limit for homeowner couples is assets totaling $1,045,500, whereas for those who do not own a home, it is set at $1,297,500.


 Regarding earnings, single pensioners may receive up to $212 every two weeks, while couples can collectively earn $372 biweekly without affecting their full entitlement to the pension.


 The threshold for receiving a part pension is an income of $2,500.80 every two weeks for singles, and $3,822.40 every two weeks for couples.


 The post
 What constitutes an adequate superannuation balance for someone at your age?
 appeared first on
 The Motley Fool Australia
 .

<div class="pitch-snippet">
 <h2>
 Curious about where you should put your $1,000 investment at this moment?
 </h2>
 
 When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool
 
 Share Advisor
 
 The newsletter he has been running for over a decade has offered thousands of subscribing members stock recommendations that have doubled, tripled, or even quadrupled their value.*
 
 
 Scott has recently disclosed his picks for what he considers might be the 'top five ASX stocks' that investors should consider purchasing at this moment. He feels confident that these shares are offering appealing valuations and could present excellent buying opportunities currently.
 
 
 See The 5 Stocks
 
 *Returns as of December 5, 2024
 
 
</div>

 
 More reading
 

<ul>
 <li>
 Westpac predicts that the RBA will reduce interest rates in 2025.
 </li>
 <li>
 Should an investor have invested $5,000 in Nvidia stocks five years ago, this is what their investment would look like today.
 </li>
 <li>
 Strategic approaches to investing in data centers for ASX participants in 2025
 </li>
 <li>
 What were the top three ethically focused ASX ETFs in terms of performance for the year 2024?
 </li>
 <li>
 The leading Australian AI stocks to consider purchasing in 2025
 </li>
</ul>

 
 Motley Fool
 Â contributorÂ
 Bronwyn Allen
 The Motley Fool Australia does not have an interest in any of the aforementioned stocks. Its parent company, Motley Fool Holdings Inc., also does not hold positions in these stocks. Additionally, The Motley Fool Australia has no stake in any of the mentioned shares. Furthermore, The Motley Fool maintains this stance.
 disclosure policy
 This article includes solely general investment guidance (covered under AFSL 400691). Authorized by Scott Phillips.

What's the Ideal Superannuation Balance for Your Age in Australia?

Unknown investing, money, personal finance, personal finance retirement, personal finance saving spending

To address this query about our system superannuation Balance, I believe it's most effective to approach it from the opposite direction. Firstly, let's look at how much we need to set aside for a…

60歳で仕事を辞めたいならやっておくべき5つのこと

Unknown lifestyle, personal finance retirement, retirement, retirement planning, senior citizens

<img data-document-id="cms/api/amp/image/AA1Bjjey" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1Bjjey.jpg"/>
 
 「FIRE」という言葉が注目されています。FIREとは、Financial Independence, Retire Earlyの略で、『経済的な自立を実現させて、仕事を早期に退職する生活スタイル』のこと。FIREに憧れるものの、いざ実行となると敷居が高いところ。それなら、60歳で仕事を辞めるのは実現できるかも……。


 とはいっても、誰でも60歳で仕事が辞められるものではありません。60歳で仕事を辞めたい人は、どういうことをしておくべきでしょうか？


 <h2>
 1）住宅ローンは完済、教育費は別貯め
 </h2>
 一番避けたいのは、リタイア後も多額の固定費がかかること。リタイア後の基本生活費はできるだけコンパクトにしたいものです。


 まずは、住宅ローンの返済が60歳までに終わるようにしておきましょう。住宅ローンの返済が残っていると、家計の収支はかなり悪化します。退職金でローンを完済する計画もアウト。退職金はリタイア後の生活の基盤となるものです。現役時代に住宅ローンは完済しましょう。


 同様に、60歳を超えても子どもの教育費がかかる人も要注意です。教育費は予想以上にかかります。自分たちの老後のお金を教育費にあてることは厳禁です。最低でも学費分は自分たちの老後のお金とは別に貯めておきましょう。


 <h2>
 2）個人型確定拠出年金iDeCo等で年金上乗せ
 </h2>
 老後の生活の支えとなるのは公的年金（老齢年金）でしょう。60歳から75歳（※）の間で好きな時から年金が受給できます。65歳以降に年金を受け取る「繰り下げ受給」をすると、65歳で受け取るはずの基準額より1カ月あたり0.7％年金額が増額されます。


 ※昭和27年4月2日以降生まれの人、受給権発生日が平成29年4月1日以降の人が該当


 70歳まで繰り下げをすると42％、75歳までで82％も65歳受給時より年金額が増えます。生涯受け取れる年金ですから、長生きのリスクに備えるために、少しでも年金額を増やしておきたいところ。


 そのためには、私的年金を準備しましょう。私的年金で生活する期間を設け、公的年金の受給開始を遅らせるのです。年金額を増やすと、年金だけで生活できる可能性が高くなります。60歳でリタイアするなら、少なくとも、70歳までは私的年金等で生活費をまかない、70歳以降から公的年金を受給するようにしましょう。


 この私的年金として、税制メリットがある「個人型確定拠出年金（iDeCo）」を利用するとよいでしょう。年金の上乗せをしっかりしておくことが大切です。


 <h2>
 3）受給できる年金額を確認
 </h2>
 老後生活の収入は公的年金がメインとなります。その年金額を知っておかないと、リタイア可能かどうかも判断できません。将来の年金額を知るには、「ねんきんネット」を利用しましょう。年金記録を確認し、年金見込額を試算することができます。将来の働き方などで年金額の変化をシミュレーションすることもできます。


 毎年、誕生月に送られてくる「ねんきん定期便」に記入されているアクセスキーと基礎年金番号があれば、すぐに利用することができます（アクセスキーがなくても、基礎年金番号がわかれば利用できます。基礎年金番号がわからない場合は、ねんきん定期便から基礎年金番号を知ることも可能です）。


 2）で準備したiDeCoなどの個人年金を利用し、公的年金の受給を70歳以降にできそうな場合は、受給開始年齢と受給額を把握しておきます。


 <h2>
 4）基本生活費を把握
 </h2>
 老後の家計の収入がわかれば、次は支出を把握する必要があります。毎月の生活費が年金受給額以内におさまる家計を目指したいからです。一般的には、リタイア後の生活費は現役時代の7割程度といわれています。ということは、現役時代の生活費を把握しなくてはいけません。


 現在の毎月の支出（教育費や住宅ローンを除く）を把握するために、3カ月間は全ての支出を家計簿につけます。スマホの家計簿アプリなどもありますから、まずは使いやすいもので全支出を管理します。また、年単位で支出するもの（固定資産税、車関連費用、年払いの保険料など）もリストアップしておきましょう。


 1年でかかる生活費がわかれば、老後の生活費も予想できます。税金やマンションの管理費などは現在の金額を、食費や交際費などの生活費は今の7割と仮定して老後の生活費を予想します。


 <h2>
 5）60歳までに貯めるべき金額を把握・計画
 </h2>
 最後に、60歳までに用意するべき預貯金額を知り、その金額を貯めることができるのであれば、60歳リタイアは可能ということになります。3）で年金収入を、4）で老後の生活費を把握することができました。まずは、年金収入で老後の生活費がまかなえるかどうかがポイントです。年金受給の繰り下げなどを検討し、まずは基本生活費を年金額内に収められたら、リタイアOKのサインです。


 年金額が少なくて基本生活費がまかなえそうになければ、赤字額の総額をだしてみましょう。100歳まで生きると考えて計算すると安心です。最低でも、その金額を60歳までに預貯金で用意できなくては、60歳でリタイアは難しいでしょう。


 次に、基本生活費以外に必要になりそうなお金を把握します。リタイア後に海外旅行に行きたい、月に一度は温泉旅行に行きたいなどの基本生活費とは別の費用。マイホームのリフォーム代なども予定があれば加算します。体が不自由になったら有料老人ホームに入りたいなどの希望がある場合は、必要な金額を試算しておきます。これらの老後のイベント費用の総額をだしてみましょう。


 最後に、医療費や介護の費用も考えておかなくてはいけません。予備費も含めて1人あたり2000万円は考えておきたいところ。これらの総額が60歳までに貯めるべき金額となります。


 <h2>
 毎月の赤字、老後のイベント費用、医療介護費を60歳までに貯める！
 </h2>
 これらの老後の基本生活費の赤字分（基本生活費が年金でまかなえない場合）、老後のイベント費用、医療費介護費といった老後に必要となるお金が把握できました。60歳で仕事をリタイアしたい場合は、その金額を60歳までに用意しなくてはいけません。


 退職金などを考慮し、残りは60歳までに貯められるように計画をたてましょう。それが実行できれば、60歳でリタイアが視野に入るでしょう。今現在の生活費の把握、老後費用の設定、計画的な貯蓄計画と実行ができれば、60歳で仕事を辞めることが可能になるでしょう。


 文：福一 由紀（ファイナンシャルプランナー）


 大学卒業後システムエンジニアとして勤務。2人の子どもを出産し退職後FP資格を取得。女性のFP仲間とともに会社を設立し、セミナー、執筆、各種メディアへの企画監修、コンサルティングなどを行っている。

60歳で仕事を辞めたいならやっておくべき5つのこと

Unknown lifestyle, personal finance retirement, retirement, retirement planning, senior citizens

「FIRE」という言葉が注目されています。FIREとは、Financial Independence, Retire Earlyの略で、『経済的な自立を実現させて、仕事を早期に退職する生活スタイル』のこと。FIREに憧れるものの、いざ実行となると敷居が高いところ。それなら、60歳で仕事を辞めるのは実現できるかも……。とはいっても、誰でも60歳で仕事が辞められるものではありませ…

How Many Americans Really Retire With $1 Million?

Unknown economics, money, personal finance retirement, retirement, retirement planning

Aiming to retire with $1 million is a significant aspiration for numerous individuals. Even though the cost of living has increased in recent times, $1 million remains a substantial sum that can provide a comfortable lifestyle during one’s retirement years when combined with other resources.
 Social Security
 .


 As achieving millionaire status becomes more commonplace, it remains an accomplishment that eludes most individuals until they reach retirement age. However, with proper planning, steadfast consistency, and maybe a bit of good fortune, you can position yourself to become part of the exclusive group known as the "two-comma club."


 
 Start Your Mornings Smarter!
 
 Wake up with
 
 Breakfast news
 
 In your inbox each trading day.
 
 
 Register Now for Free »
 
 


 This is how many individuals manage to reach retirement age with $1 million.

<div class="image">
 <img data-document-id="cms/api/amp/image/AA1B8XSs" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1B8XSs.jpg"/>
</div>
<h2>
 Pensioning off as a millionaire isn't overly rare, yet still quite uncommon.
</h2>

 The most reliable data we have to assess the number of Americans with a net worth of $1 million or higher originates from the
 Federal Reserve
 Every three years, the Federal Reserve carries out a Survey of Consumer Finances, which gathers crucial demographic information and delves deep into individuals' finances from American citizens. The latest iteration of this survey was conducted in 2022. We will not receive the findings for the 2025 survey for roughly another one and a half years; thus, at present, these are our most current figures available.


 Approximately 18% of U.S. households boasted a net worth of at least $1 million in 2022, based on available statistics. However, this figure encompasses household units spanning from 18 to 95 years old.


 When examining households with the primary breadwinner aged between 50 and 64 years old—right around the typical retirement age—one in every four can be considered millionaires. This equates to approximately 16.3 million people in the U.S.


 Certainly, some individuals do achieve millionaire status long before they reach their retirement years. However, the proportion of people attaining such significant wealth by age 50 is considerably smaller.


 It’s important to observe that the number of millionaires stays notably consistent among those who have surpassed retirement age. This could indicate various benefits that older generations enjoy when building wealth, including reduced costs related to education and housing. However, this stability might also highlight the effectiveness of amassing and maintaining assets that increase in value gradually, such as shares.


 Actually, that's the simplest method for you to become part of the community of millionaire retirees.

<h2>
 The straightforward way to retire as a millionaire
</h2>

 About one-fourth of U.S. families manage to amass a net worth of $1 million by retirement age, which might encourage you to believe that achieving this benchmark is also within your grasp. Becoming a millionaire isn’t typically due to random chance; though fortune may play a role, it’s more often the result of persistent saving and investing that allows individuals to secure the financial stability required for a comfortable retirement.


 There are many easy opportunities that can assist you in becoming a millionaire when you retire.


 Initially, focus on clearing any high-interest debts like credit cards or personal loans because these take precedence over everything else. Few investment opportunities can match the returns of eliminating debt with an annual interest rate of 30%.


 If your boss provides a
 matching 401(k) contribution
 , that should be the first place you start saving for retirement. Even if the investment options in your workplace retirement plan aren't great and the fees are high, it's probably worth securing the match.


 If your employer does not provide a retirement plan with a matching contribution, look into utilizing any available tax-advantaged retirement accounts.
 IRA or Roth IRA
 It's an excellent choice for saving towards retirement since you won’t incur any taxes.
 taxes on capital gains
 or dividends in your account. This could lead to a significantly larger savings pot when you retire.


 When selecting where to invest, you have numerous choices. Investing in specific stocks might appeal to you as you spot chances within the market. However, should you lack the time for thorough company analysis and stock valuation, opting for a low-cost diversified fund would be wise.
 index fund
 such as the
 
 Vanguard S&P 500 ETF
 
 
 (NYSEMKT: VOO)
 
 The fund follows the index of
 
 S&P 500
 
 index, commonly employed as a standard reference
 large-cap U.S. stocks
 It levies only 0.03% of your total assets to offer a well-diversified mix that mirrors the performance of the benchmark index.


 Despite the benefits that senior citizens might have enjoyed with regard to expenses such as college tuition or property purchases, young individuals possess a significant edge in the realm of investment: time. This factor stands out as an incredibly potent element within financial planning. The extended duration for which you permit your capital to accumulate interest leads to substantial growth. Regularly setting aside funds and channeling them into investments across years has the potential to transform one into a millionaire.


 Even if you find yourself pushing forty or fifty, becoming a millionaire at retirement isn’t out of reach. It will require ramping up your saving efforts and sticking steadfastly to your strategy. Achieving this milestone doesn’t need to remain an unattainable fantasy; countless Americans can confirm otherwise.

<h2>
 The $
 
 22,924
 
 The Social Security benefit many seniors fail to notice.
</h2>

 If you’re similar to many Americans, you might be lagging several years—or even more—behind on saving for retirement. However, some lesser-known “Social Security strategies” may assist in increasing your retirement earnings. For instance: one simple tactic could provide an additional $
 
 22,924
 
 More every year! After mastering strategies to optimize your Social Security benefits, we believe you can retire with confidence and achieve the peace of mind everyone seeks.
 Just click here to find out how you can learn more about these tactics.


 
 Check out the "Social Security Secrets" »
 


 Adam Levy
 has no holdings in any of the aforementioned stocks. The Motley Fool holds positions in and advocates for investing in the Vanguard S&P 500 ETF. The organization also has a
 disclosure policy
 .

How Many Americans Really Retire With $1 Million?

Unknown economics, money, personal finance retirement, retirement, retirement planning

Aiming to retire with $1 million is a significant aspiration for numerous individuals. Even though the cost of living has increased in recent times, $1 million remains a substantial sum that can pro…

Study shows how long Social Security, $1.5M nest egg would last in 50 states

Unknown money, personal finance retirement, retirement, retirement planning, social security

<img data-document-id="cms/api/amp/video/AA1zTQNl" data-reference="video"/>
 
 Retirement nest eggs and Social Security benefits are key sources of funds for many Americans as they live out their golden years in the state of their choosing.
 
 
 A recently-released study
 from GOBankingRates
 looked at the financial runway that retirees would have in each state with Social Security benefits and $1.5 million socked away for retirement, finding West Virginia offered the most years before living costs would deplete their retirement savings.
 
 
 The Mountain State ranked No. 1 with $1.5 million in retirement savings expected to sustain retirees there for a whopping 54 years while facing about $27,800 in living costs each year after
 Social Security benefits
 , according to the study.
 
 
 The Social Security Administration (SSA) allows Americans to access their Social Security retirement benefits early starting at age 62, though payments "will be reduced a small percentage for each month before your full retirement age" if they do that, according to the SSA. One’s "full retirement age" depends on when a person was born.
 
 
 
 SOCIAL SECURITY PAYMENTS TO INCREASE FOR PUBLIC PENSION RECIPIENTS
 
 
 
 GOBankingRates said it used data from a slew of sources, including the Bureau of Labor Statistics, the SSA and Missouri Economic Research and Information Center, to determine its rankings of how states stack up in terms of the amount of time that Social Security and $1.5 million in retirement would last
 retirees
 residing in them.
 
 
 
 READ ON THE FOX BUSINESS APP
 
 
 
 Overall, the study indicated that those two sources of funds would provide different amounts of years of "financial security"
 for retirees
 in states across the country. States’ cost of living after Social Security ranged from $27,803 to $87,770 per year, it found.
 
 
 
 401(K) BALANCES HIT SECOND HIGHEST ON RECORD: FIDELITY
 
 
 
 GoBankingRates found the number of years that $1.5 million and Social Security
 would sustain
 retirees in each state was:
 
 <img data-document-id="cms/api/amp/image/BB1nwSZl" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1nwSZl.jpg"/>
 <img data-document-id="cms/api/amp/image/BB1nJxXh" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/BB1nJxXh.jpg"/>
 <img data-document-id="cms/api/amp/image/AA1B6J6S" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1B6J6S.jpg"/>
 <img data-document-id="cms/api/amp/image/AA1ujvfk" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1ujvfk.jpg"/>
 
 
 THIS MIDWESTERN STATE IS CONSIDERED ONE OF THE BEST PLACES TO RETIRE, NEW STUDY SAYS: SEE THE LIST
 
 


 
 
 Original article source:
 
 Study shows how long Social Security, $1.5M nest egg would last in 50 states

Study shows how long Social Security, $1.5M nest egg would last in 50 states

Unknown money, personal finance retirement, retirement, retirement planning, social security

Retirement nest eggs and Social Security benefits are key sources of funds for many Americans as they live out their golden years in the state of their choosing. A recently-released study…

Here’s how a 40-year-old could start investing £100 per week to retire early

Unknown investing, investing economy, investors, personal finance retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA13PhLc" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA13PhLc.jpg"/>

 Retirement can seem a long way off for many people. A financially savvy worker can turn that long-term timeframe to their advantage and start investing sooner rather than later to help fund their retirement.


 For example, if a 40-year-old started today by investing £100 each week in carefully chosen blue-chip shares, I reckon they could grow their wealth and potentially
 retire early
 .

<h2 class="wp-block-heading" id="h-regular-saving-can-help-build-a-sizeable-retirement-fund">
 Regular saving can help build a sizeable retirement fund
</h2>

 Of course, starting at 30 would be even better than starting at 40 – and at 20 would be even better than at 30!


 Unfortunately, though, many of us do not realise that (or have other spending priorities) until it is too late. Even at 40, fortunately, an investor could still make a big difference to their retirement fund if they start investing immediately.


 Putting £100 per week into a
 Stocks and Shares ISA
 or
 SIPP
 and compounding it at 10% annually, after 25 years the investor will have a retirement fund of close to £535k.


 That could help them draw an income (for example, via dividends) and
 retire earlier than otherwise
 .

<h2 class="wp-block-heading" id="h-building-a-quality-portfolio-of-great-shares">
 Building a quality portfolio of great shares
</h2>

 A goal of 10% might not sound too challenging. After all, FTSE 100 insurer
 
 Phoenix
 
 
 Group
 
 (
 LSE: PHNX
 ) currently offers a dividend yield of 10.2% and has been a consistent dividend raiser in recent years. Some other blue-chip shares also offer high yields.


 But there are several things to bear in mind. That compound annual growth rate includes good years as well as bad. It also includes capital gain (or loss), as well as dividends.


 Phoenix has a generous dividend yield, but its share price has fallen 11% in the past five years.


 On top of that, it is always important to diversify across different shares in case one of them disappoints. Over the decades between age 40 and retirement, that is much more likely to happen than it may seem to an investor when they first start investing!


 But with the
 right approach
 and
 investing mindset
 , I think a 10% compound annual growth rate could be achievable.

<h2 class="wp-block-heading" id="h-one-share-to-consider">
 One share to consider
</h2>

 In fact, I do still think Phoenix is a share to consider for its long-term potential.


 The insurance sector is extensive and doesn’t seem poised for significant shrinkage anytime soon, as far as I can tell. Given its approximately 12 million clients and near £300 billion in volume, Phoenix operates a massive enterprise capable of producing substantial surplus funds. This financial cushion is beneficial when supporting sizeable dividend payouts.


 All stocks come with risks, including Phoenix. One aspect is their portfolio of mortgages, which relies on specific valuation assumptions. Should a downturn in the property market lead to significant drops in prices, these assumptions might prove insufficient. This could force Phoenix to reassess the value of its mortgage book, potentially reducing profit margins.


 Looking ahead over the longer term, however, I believe the established enterprise still holds considerable promise.


 The post
 For someone who is 40 years old aiming to retire early, here’s how they might begin by investing £100 each week.
 appeared first on
 The Motley Fool UK
 .

<div class="above-disclaimer-pitch-snippet">
 <h2>
 Should you invest £1,000 in Phoenix Group Holdings Plc right now?
 </h2>
 
 When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship
 Motley Fool Share Advisor
 newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
 
 
 And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Phoenix Group Holdings Plc made the list?
 
 
 See the 6 stocks
 
</div>

 
 More reading
 

<ul>
 <li>
 I enquired of ChaGPT about a leading UK dividend stock for my 2025 ISA — and I was delighted with the result!
 </li>
 <li>
 Is the highest dividend from the FTSE 100, offering a 10.3% yield, worth looking into now?
 </li>
 <li>
 The 2025 Stocks and Shares ISA countdown has begun! It’s time to start planning.
 </li>
 <li>
 A 10% yield! Could this be a rare opportunity, perhaps occurring only once every ten years, to think about purchasing FTSE income stocks such as this one?
 </li>
 <li>
 Aiming for £100 per week in passive income? Think about investing in these UK-based stocks.
 </li>
</ul>

 C Ruane does not hold any positions in the shares mentioned. The Motley Fool UK also has no stake in these shares. Opinions regarding the companies discussed in this piece belong to the author and might diverge from the formal recommendations provided through our service offerings like Share Advisor, Hidden Winners, and Pro. At The Motley Fool, we feel that evaluating multiple perspectives contributes significantly to making well-informed decisions.
 us better investors.

Here’s how a 40-year-old could start investing £100 per week to retire early

Unknown investing, investing economy, investors, personal finance retirement, retirement planning

Retirement can seem a long way off for many people. A financially savvy worker can turn that long-term timeframe to their advantage and start investing sooner rather than later to help fund their re…

Discover 9 Clever Ways to Withdraw Retirement Funds

Unknown 401 retirement plans, personal finance, personal finance retirement, retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1zeGkW" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1zeGkW.jpg"/>

 If you find saving for retirement complex, imagine the challenge of withdrawing those funds efficiently to keep your tax bill as low as possible.


 As high as 70 percent of your hard-won retirement savings could vanish due to income, estate, and state taxes," asserts IRA expert Ed Slott, who authored "Fund Your Future: A Tax-Efficient Saving Strategy for Your Twenties and Thirties" and "The Retirement Savings Time Bomb Tick-Tocks Loudly.


 That’s cash that many individuals would rather hold onto personally. Yet, what steps can actually make this possible? Below are nine effective withdrawal methods designed to assist you in sidestepping expensive tax pitfalls and retaining greater portions of your retirement savings.

<h2>
 1. Adhere to the guidelines for Required Minimum Distributions (RMDs)
</h2>

 RMD stands for
 required minimum distribution
 , and once you reach the age of 73, you'll be required to begin withdrawing a minimum sum from various retirement accounts like a traditional IRA or
 401(k) plans
 .


 You are required to make Required Minimum Distributions (RMDs) every year by April 1 from the year following when you reach age 73, and by December 31 for each year thereafter. To put it another way, if you become 73 in 2024, you must withdraw your initial RMD by April 1, 2025.


 As the legislation was enacted,
 SECURE Act 2.0
 In late 2022, the required minimum distribution (RMD) starting age was raised from 72 to 73 in 2023. On January 1, 2033, this age will increase once more to 75.


 The consequence of not adhering to the guidelines is significant. Missing the deadline for Required Minimum Distributions (RMDs) incurs a substantial 25 percent excise tax. Should you fail to withdraw your RMD from an account,
 IRA
 Correct the error swiftly and resubmit your tax forms—the penalty might be decreased to 10 percent.


 If you come up short with your required minimum distribution (RMD), penalties can still be applied. For instance, if your RMD for the year should have been $20,000 but due to an error you only withdrew $5,000, the Internal Revenue Service (IRS) would impose a 25% penalty. This means they could charge you $3,750, which represents one-fourth of the missing $15,000 withdrawal amount.


 When calculating your Required Minimum Distribution (RMD), keep in mind that it can vary each year. This fluctuation depends on factors such as your current age, estimated lifespan (a longer expected lifetime means a smaller withdrawal amount), and the total account balance, which should reflect the fair market value of the assets held within your accounts as of December 31st of the previous year prior to taking the distribution.


 Take a look at the "Uniform Life Table" in
 IRS Publication 590-B
 To assist in determining how much you need to withdraw from your account.
 financial advisor
 Can also assist you in making optimal choices when it comes to taking withdrawals from your retirement accounts.

<h2>
 2. Remove funds from accounts in the proper sequence
</h2>

 If your retirement savings are necessary for getting by and you're considering withdrawing funds from an IRA, 401(k), or another account, here’s what you should know.
 Roth account
 , resist the urge for immediate satisfaction. While withdrawing from a Roth IRA is tax-free, you could end up losing out due to missed opportunities.


 Rather than doing otherwise, opt to withdrawal funds initially from your taxable retirement accounts and proceed accordingly.
 Roth IRAs
 by oneself for as much time as feasible.


 Doubtful? Think about this scenario: A 73-year-old individual decides to withdraw $18,000 from a conventional IRA and finds themselves in the 24% tax bracket. This means they will end up paying $4,320 in taxes. However, withdrawing the identical sum from a Roth IRA wouldn’t result in any tax payment at all. Now imagine further—should this person avoid Required Minimum Distributions (RMDs) from their Roth IRA and achieve a yearly return of 7%, after ten more years, the total value could reach approximately $35,409. Importantly, these gains remain untaxed upon withdrawal either by them directly or through inheritance by beneficiaries.

<h2>
 3. Understand the process of taking distributions
</h2>

 If you've accumulated multiple retirement accounts due to changing jobs frequently and you're nearing retirement, you'll need to determine how to access these funds. You might not necessarily have to draw from all of them.


 Do you have to check all of your accounts? Likely not.


 If you have several conventional IRAs, you're able to make withdrawals from each individually. However, a potentially smarter strategy might involve consolidating the assets across all your accounts into a single IRA before making just one withdrawal.


 Combining IRAs into one account might streamline documentation, facilitate the calculation of upcoming distributions, and provide more control over your finances.
 asset allocation
 , Slott says.


 However, you cannot use IRA withdrawals to fulfill your required minimum distribution (RMD) obligations for a 403(b), 401(k), or any other similar plan.


 It's important to remember that 401(k) plans cannot be combined to calculate one single required minimum distribution, according to George Jones, a senior tax analyst and managing editor at Wolters Kluwer Tax & Accounting. Consolidating these plans into an IRA can simplify this process.

<div class="editorial-insight-box">
 
 
 Need an advisor?
 
 
 
 Looking for professional advice on handling your investments or preparing for retirement?
 
 
 DIWIDA’s AdvisorMatch
 I can link you with a Certified Financial Planner who will assist you in reaching your monetary objectives.
 
</div>
<h2>
 4. Grasp the regulations concerning Required Minimum Distributions for spouses
</h2>

 Should you find yourself with a much younger partner likely to inherit your IRA, you might be able to decrease your mandatory withdrawals. This could lead to lower tax liabilities and ensure your retirement savings stretch further over time.


 Keep in mind that Required Minimum Distributions (RMDs) are figured out with elements such as your expected lifespan according to the Internal Revenue Service (IRS). However, should you have designated an individual spouse as the exclusive recipient of your Individual Retirement Account (IRA), and this spouse is more than ten years your junior, the calculation for your RMD would be based on a joint-life expectancy chart instead. This adjustment can lessen the sum you must withdraw each year.


 For instance, consider an individual retiring at age 73 this year, who must begin taking required minimum distributions (RMDs) by April 1st of the subsequent year. According to the Internal Revenue Service (IRS), such a person has a projected lifespan of 26.5 years from now. If their Individual Retirement Account (IRA) holds $200,000, then their initial RMD for that period would amount to $7,547.17—calculated as $200,000 divided by 26.5.


 However, suppose this individual appoints their 56-year-old spouse as the exclusive beneficiary for the retirement account. Then, their combined life expectancy would amount to 31.7 years. Consequently, the initial Required Minimum Distribution (RMD) would be reduced to $6,309. The Internal Revenue Service (IRS) outlines this procedure.
 A table for this scenario can be found in Publication 590-B.
 .

<h2>
 5. Donate to charity
</h2>

 Do you have a meaningful cause you wish to contribute to? If one of your long-term financial goals involves supporting a charitable organization, consider utilizing your retirement resources to create an impact.


 This legislation permits people who are 70 years old and six months or older to make tax-free contributions, referred to as
 qualified charitable distributions
 Up to $100,000 per year can be donated directly from an IRA to a charitable organization as part of the required minimum distribution. This donation does not get counted as taxable income, thus lowering the donor’s potential income tax burden. Additionally, if you submit a joint tax return with your spouse, they too may contribute up to $100,000 yearly under this provision.


 However, keep in mind that those making tax-free charitable distributions from their IRAs will not be eligible to claim these contributions as a deductible itemization.


 “Either one of these options applies,” explains Slott. “Those who adopt this approach will incur lower tax liabilities; therefore, for those with charitable inclinations, it represents the optimal method for making contributions.”

<h2>
 6. Take "in-kind" withdrawals that count as required minimum distributions (RMDs)
</h2>

 If selling your assets isn't appealing, opting for cash withdrawals might seem simpler, yet it's not mandatory—or necessarily advisable. Instead, consider what are known as in-kind distributions, which involve withdrawing stocks or bonds directly. This approach could be preferable for those aiming to retain their holdings for different purposes. Essentially, these assets would shift from your IRA to a taxable account. On the day of transfer, these in-kind withdrawals will be evaluated based on their current fair market value.


 Withdrawing assets directly might be simpler and more cost-effective compared to selling the investments within your IRA and then repurchasing them in another investment account, which could incur additional penalties or charges.

<h2>
 7. Consider delaying RMDs
</h2>

 Delaying your retirement? If you're still employed at 73 and contributing to a 401(k) or 403(b), you might be exempt from Required Minimum Distributions (RMDs)—provided you don't hold more than 5% of the business and your retirement plan allows this exception. Under such circumstances, you can postpone RMDs until April 1 following the year you retire. At that point, you will begin withdrawing funds.


 This holds true as long as you're employed at any point during the year. Therefore, if you're 73½ years old and considering retirement before the end of the year, think again unless you wish to take an early distribution. Should you continue working past January 1st—even for just a single day—it will delay your requirement to withdraw the initial RMD by another year.


 Remember that the delay applies only to your current employer’s 401(k) plan. However, if you have 401(k) accounts from former employers and you're 73 years old or more, you will be required to withdraw funds from those accounts.

<h2>
 8. Think about doing a Roth conversion
</h2>

 Tax experts and retirement consultants frequently encourage their clients to transfer retirement accounts into Roth IRAs.
 Roth conversion
 — where time and tax-free growth can work their magic. However, it isn’t a cure-all solution, and this step might not be beneficial for every worker.


 Converting a conventional 401(k) or traditional IRA into a Roth IRA usually leads to a taxable event. Nonetheless, after completing this transfer, any growth within these accounts occurs without taxes, and they won’t be touched again as long as certain conditions are met.


 Suppose a 43-year-old individual secures a new position and opts to transfer $150,000 from their 401(k) to a Roth IRA. Given that this person falls within the 35% federal income tax bracket, they will face a tax liability of $52,500, ideally settled using external funds rather than those inside the IRA. Assuming the full sum in the Roth account experiences steady growth at an annual rate of 7%, after three decades, it could amass to approximately $1.14 million.


 For individuals nearing retirement or those required to take Required Minimum Distributions (RMDs), if you intend to use these retirement funds personally rather than leaving them to beneficiaries, it might be prudent to keep them invested as they are.


 “However, if your aim is to safeguard that retirement asset for beneficiaries,” Slott explains, “this is an excellent strategy as it eliminates the doubt around future tax rates. Switching to a Roth IRA is highly beneficial for the coming generations.”

<h2>
 9. Perform a Roth conversion when you're in your "semi-retirement" phase.
</h2>

 When your career is coming to an end and you're making less money, it might become essential to withdraw funds from your retirement account. Provided you are at least 59½ years of age, you can make withdrawals from your retirement plans without facing penalties.
 A 10% penalty for withdrawing funds prematurely
 .


 This could also be a good opportunity to transfer part of your traditional IRA to a Roth IRA—particularly if you anticipate your tax bracket will increase once you reach age 73 and must start withdrawing minimum distributions. Adopting this approach might allow you to delay claiming Social Security benefits until a future date when doing so would be more advantageous.
 benefits will be bigger
 .


 Go over it with your financial advisor to determine if this is suitable for your circumstances.

<h2>
 Bottom line
</h2>

 Using some skilled maneuvers and understanding how to withdraw funds from your retirement accounts can help reduce the impact of taxes. However, this is a complicated issue.
 finding a financial advisor
 Who will act in your best interests to assist you through this process may prove invaluable many times over.
 Here’s how you can locate an exceptional advisor.


 Editorial Disclaimer: It is recommended that all investors perform their own thorough research into investment strategies prior to making an investment choice. Additionally, it should be noted that previous performance of investment products does not ensure future growth in value.

Discover 9 Clever Ways to Withdraw Retirement Funds

Unknown 401 retirement plans, personal finance, personal finance retirement, retirement, retirement planning

If you find saving for retirement complex, imagine the challenge of withdrawing those funds efficiently to keep your tax bill as low as possible. As high as 70 percent of your hard-won retirement s…

Are You Ready for These Big Changes After Retirement in Canada?

Unknown money, pensions, personal finance retirement, retirement, retirement planning

<img data-document-id="cms/api/amp/image/AA1A2Zu5" data-reference="image" src="https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AA1A2Zu5.jpg"/>

 Retirement is frequently viewed as the much-anticipated prize following decades of diligent labor. The constant cycle of early wake-up calls, workplace dramas, and hectic travel experiences eventually ceases, allowing you to reclaim complete authority over your schedule and leisure activities.


 Although retirement provides greater liberty, it also introduces unforeseen sacrifices. Certain aspects, such as a consistent paycheck, are clear-cut. However, others, including a feeling of fulfillment, could quietly impact you.


 Lacking adequate preparation, such modifications might result in feelings of unreadiness. Below are five significant aspects that often vanish during retirement, along with steps you can take now to ensure they won't surprise you later on.

<h2>
 Don't Miss
</h2>
<ul>
 <li>
 The following five magical financial strategies can aid in climbing Canada's wealth ladder by 2025, with each action being completable in mere minutes.
 
 Here's how
 
 </li>
 <li>
 Discover the top banking promotions, account incentives, and cashback deals with us.
 
 top new banking account deals
 
 Don't let these time-limited offers pass you by!
 </li>
 <li>
 In 2024, Warren Buffett shifted his focus to Canadian stocks — here's
 
 Three tactics enabling you to invest akin to an expert
 
 </li>
</ul>
<h2>
 1. The fiscal security of your paycheck
</h2>

 The quickest adjustment after retiring will be the disappearance of your regular paycheck. For many years, receiving this payment was a consistent part of your routine. Instead, you'll depend on taking money out from sources like your RRSP, TFSA, CPP, OAS, along with any additional pensions or investment funds you've accumulated throughout your working life.


 A lot of Canadians experience this shift as being more disconcerting than anticipated. Transitioning from making money and setting aside savings to drawing down those funds and managing expenses can be quite unsettling.
 A 2024 report
 According to findings from CPP Investments, nearly two-thirds (61%) of Canadians express concerns about exhausting their retirement savings before they pass away. The issue intensifies with inflation, since fixed incomes tend to decrease in value when measured against rising prices over time.


 An effective withdrawal plan is essential. While the conventional "4% rule" has faced scrutiny recently, with certain specialists recommending a reduced withdrawal percentage for longer life spans, diversifying revenue sources via investments, rental earnings, or freelance jobs can further alleviate monetary concerns.

<h2>
 2. Your risk tolerance
</h2>

 When you're employed, tackling investment risks might seem more controllable since you continue to earn an income. Should the stock market decline, you have enough time to bounce back.


 However, once retired, market declines can significantly affect both your investment portfolio and your capacity to draw from it without financial strain. This phenomenon is referred to as "sequencing risk," where initial withdrawals made during an economic downturn can accelerate the depletion of your savings beyond what was expected.


 A significant number of retirees transfer substantial parts of their savings into low-risk investment options like GICs or bonds to reduce potential losses. Nonetheless, an overly conservative approach might result in a different hazard: exhausting your funds before you pass away.


 An essential approach to investing involves balance. Holding onto certain equity positions helps facilitate ongoing development, whereas keeping liquidity equivalent to one to two years' expenses can assist in navigating through near-term fluctuations in the financial markets.

<h2>
 3. Your feeling of direction and fulfillment
</h2>

 Working goes beyond merely making an income; it offers structure, social engagement, and a feeling of achievement. Retirement often leaves numerous individuals adrift.


 A study by the
 National Library of Medicine
 discovered that not having a sense of purpose can result in depression, substance abuse, and negative self-perception. There is an increasing worry about social isolation as well, especially among men, who generally maintain fewer social ties beyond their workplace; this is according to the Government of Canada.
 indicates that 30% of elderly individuals
 are vulnerable to experiencing social isolation.


 To steer clear of this emotional dip, it’s essential to look past your financial planning alone. Engaging in volunteer activities, exploring hobbies, or possibly working part-time can add structure and satisfaction to your life.

<h2>
 4. Employer-sponsored benefits
</h2>

 Missing out on a paycheck is one issue, however, losing employer-provided benefits – particularly health insurance – can pose an even greater challenge. While Canadian provincial healthcare systems cover numerous medical costs, they do not account for every expense.


 The expenses for prescription medications, dental services, vision care, and long-term support can accumulate rapidly.
 A report
 According to data from Innovative Medicines Canada, approximately 70% of Canadians—or over 27 million people—depend on workplace-provided health benefits for additional coverage.


 If you retire before 65, you may need to purchase private health insurance or pay out-of-pocket for certain medical expenses. Planning ahead by setting aside savings specifically for healthcare or considering a retirement health plan can help bridge the gap.

<h2>
 Read More
</h2>
<ul>
 <li>
 From expansion to income, invest more intelligently with the
 
 best ETFs
 
 </li>
</ul>
<h2>
 5. Your spending habits
</h2>

 A lot of retirees find themselves in what experts refer to as the "honeymoon stage" of retirement—travelling extensively, eating out often, and pursuing costly pastimes. Although this liberty is thoroughly earned, failing to balance current expenditures with future requirements might result in monetary difficulties.


 As individuals grow older, their healthcare expenses often increase. Failing to plan accordingly, expenditures during premature retirement may result in monetary difficulties further down the road.


 For instance, obtaining moderate home care for 22 hours each week, where the typical rate is $37 per hour, would equate to approximately $3,000 monthly. In contrast, almost half of all Canadians believe that such care generally costs about $1,100 per month.


 Monitoring expenditures and adapting to various stages of retirement may aid in sustaining fiscal steadiness through your golden years.

<h2>
 Final thoughts
</h2>

 Retiring marks a significant change in one’s life; although it offers liberation, it presents various difficulties as well. By recognizing what changes post-retirement and preparing adequately, you can guarantee yourself a safer and richer upcoming phase.


 Choosing wisely for your money management, investment strategies, personal relationships, and healthcare can empower you during your retired years. It’s crucial to start preparing ahead of time, remain flexible, and pick options that match up with what you aim to achieve over the long haul.

<h4>
 Sources
</h4>

 1.
 National Library of Medicine:
 Objective of Existence Among Elderly Individuals: A Comprehensive Analysis on Definition, Assessments, and Influencing Factors, by PV AshaRani, Damien Lai, JingXuan Koh, and Mythily Subramaniam (May 11, 2022)


 
 2.
 Innovative Medicines Canada:
 Unleashing the Advantages: The Impact of Personal Drug Insurance within Canada's Health Care System
 


 3.
 Scotia Wealth Management::
 Healthcare expenses in Canada: Preparing for inflation-adjusted treatment (January 14, 2025)


 
 This article
 5 major things that vanish post-retirement in Canada – Are you ready for them?
 originally appeared on Money.ca
 

<h2>
 What To Read Next
</h2>
<ul>
 <li>
 Emergency veterinary costs can reach up to $4,000 – however, adequate insurance can cover these expenses.
 
 you can safeguard your pet without emptying your wallet
 
 </li>
 <li>
 Prepare for stock market volatility — learn from billionaires
 
 Mark Spitznagel’s urgent warning
 
 and discover ways to protect your investments prior to the subsequent market downturn!
 </li>
 <li>
 Boost your savings and reduce taxes — look into this option.
 
 right investment account
 
 For your monetary objectives today
 </li>
</ul>

 
 The content of this article serves solely as information and must not be interpreted as advice. It comes with no guarantee or warranty whatsoever.

Are You Ready for These Big Changes After Retirement in Canada?

Unknown money, pensions, personal finance retirement, retirement, retirement planning

Retirement is frequently viewed as the much-anticipated prize following decades of diligent labor. The constant cycle of early wake-up calls, workplace dramas, and hectic travel experiences eventual…