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Understanding Retirement Trends with William Schantz

Understanding Retirement Trends with William Schantz

As someone planning to retire, understanding the system put in place by the government, their policies, and rules is vital to making wise decisions and staying on the right side of the law. The United States system has seen many changes over the years, and William Schantz of Mid Atlantic Financial, LLC believes it’s essential to stay updated on the latest trends. William Schantz believes that understanding these changes may affect those planning to retire during this period and what options are available to maximize retirement benefits.

How can Trends affect your retirement plan?

Your retirement plan can be affected by some different trends. For example, if you’re relying on Social Security for a significant portion of your income, any changes to Social Security could significantly impact your retirement. Similarly, if you depend on investments for your retirement savings, then changes in the stock market could also have a significant effect. Additionally, interest rates can play a role in how much money you have available to save for retirement and how much you’ll ultimately receive from your retirement accounts. Finally, changes in the cost of living can also erode your purchasing power over time, so keeping an eye on inflation when planning for retirement is essential. These factors underscore the importance of staying informed about the latest trends and developments affecting retirement planning. Doing so can ensure that your retirement plan remains on track.

Current Retirement Trends

1. One of the most significant changes to the retirement system in recent years is the increase in life expectancy. This means that individuals are living longer and need their retirement savings to last for a more extended period. As a result, many people are opting to delay their retirement age to continue growing their savings.

2. According to William Schantz Social Security retirement age has also been slowly increasing over time. In 2000, the full retirement age was 65 years old. However, it is currently set to gradually increase to 67 years old by 2027. This gradual increase may relieve those worried about outliving their retirement savings.

3. Another trend that has been occurring in the shift from defined benefit pension plans to 401(k) and other defined contribution plans. This change has been driven by several factors, including the increased life expectancy and the desire for more control over retirement assets.

4. The 401(k) became popular in the 1980s as a way for employees to save for retirement with pre-tax dollars. Employer contributions and tax-deferred growth. However, in recent years there has been increased scrutiny of 401(k) fees and investment options. As a result, many employees opt for other retirement savings vehicles such as IRAs.

5. The rise of the gig economy has also impacted the retirement system. More and more people are becoming self-employed or working part-time jobs. This Gig Economy has made it challenging to save for retirement using traditional methods such as a 401(k).

6. Another trend that has been popular in recent years is the use of health savings accounts (HSAs). These accounts allow employees to set aside pre-tax dollars to cover qualifying medical expenses.

7. One of the biggest concerns for those nearing retirement is how to generate income. For many people, traditional sources of income such as pensions and Social Security are not enough to sustain them throughout their retirement years. As a result, more and more people are relying on alternative sources of income such as part-time work, annuities, and rental property.

Bottom Line

William Schantz points out that there are a number of different ways to save for retirement, and the best option will vary depending on your individual circumstances. However, it’s crucial to stay informed about the latest trends so that you can make the best decisions for your future.