SOMA Living August 2024

FINANCIAL FOCUS Are you concerned about outliving your finances? Many individuals, including current retirees, share the worry of depleting their assets during retirement years. According to a study by Cerulli Associates, 58% of retirement savers across all age groups name this as their top retirement fear. This anxiety can significantly impact your retirement quality. However, there’s no need to panic - proactive measures can prevent the risk of running out of funds. Here are steps to consider: • Estimate your retirement expenses: Gain a clear understanding of your retirement financial needs. Some costs will decrease after retirement, such as work-related expenses, while others, like medical costs, may rise. Knowledge of your retirement financial requirements can alleviate fears of financial insecurity. • Boost pre-retirement savings: Utilize your peak earning years leading up to retirement by maximizing contributions to your IRA, 401(k), or other retirement plans. • Optimize Social Security benefits: Delaying Social Security claims until your full retirement age (between 66 and 67) or even until age 70 can increase monthly benefits. • Consider re-entering the workforce: Returning to work part-time or consulting can enhance retirement savings and delay Social Security claims, providing additional financial support. • Reduce retirement expenditures: Downsizing living arrangements or relocating to a more affordable area can significantly cut costs. Additionally, take advantage of senior discounts and eliminate unnecessary expenses like unused streaming services. • Seek income-generating investments: Adjust your investment portfolio to include more income-producing assets while maintaining growth potential to combat inflation. By reinforcing your financial stability pre and post-retirement, you can minimize concerns about outliving your financial resources.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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