According to a new study from Transamerica, Generation X doesn’t feel too confident about its chances in retirement. In a recent study, the financial company found that only 12 percent of those in Generation X feel comfortable about being able to retire. The average Generation X household had only $69,000 in retirement savings.1
Generation X is generally defined as those born between the mid-1960s and the early 1980s. Most Gen Xers are in their 40s or 50s now, which means that while they still have time to save, retirement is approaching soon.
If you’re a Gen Xer and are behind on saving for retirement, now is the time to take action. The good news is you still have time left to accumulate assets and implement a strategy. Below are a few good starting steps to get you back on track:

Identify your retirement savings goal.
 
Every plan needs an endpoint. Imagine if you started a road trip without a destination. You’d likely wander without making much forward progress. Your retirement strategy is no different. You need to know your end goal so you can track and monitor your progress.
In a retirement strategy, your end goal is the amount of money you need to save to fund your retirement. It’s based on your specific needs and goals and your expected lifestyle in retirement.
You can estimate your retirement number by developing a projected budget. List all your planned expenses and estimate their costs. Then add them up to project your total annual expenses in retirement. Assume that you’ll be retired for decades, and multiply your annual cost of living by an estimated number of years in retirement. That’s your total funding need.
During this step, it’s important to consider inflation. Your cost of living will likely increase throughout your retirement. Be sure to consider that as you estimate your savings goal. Also, you may want to consult with a financial professional to help you develop a precise funding goal.

Use a budget to cut your spending and boost your savings.
 
A simple budget may be the most powerful financial tool at your disposal. A budget helps you manage your spending and track your progress toward large financial goals, such as retirement. Unfortunately, nearly 60 percent of Americans don’t use a budget.2
If you’re among that group, now may be the time to make a change. List your expenses and look for areas to cut back so you can increase your retirement contributions. You may want to find ways to reduce your debt or cut spending on discretionary items like dining out or entertainment. Develop a budget and stick to it so you can maximize your savings.

Look for opportunities to boost your income.
 
Perhaps your most powerful strategy is to increase your income so you can save more for retirement. That may be easier said than done. However, you may have years or even decades left in your career. If you can increase your earnings and then put the extra income toward retirement, that will go a long way toward helping you overcome your savings gap.
Look for opportunities to advance and grow in your career. Perhaps you need to further your education or expand your skill set at work. Maybe you should consider freelance work opportunities to supplement your current income.
 
Ready to develop your retirement strategy? Let’s talk about it. Contact us today at J. Harris Financial. We can help you analyze your needs and goals and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.thinkadvisor.com/2016/08/23/transamerica-survey-highlights-american-retirement/?slreturn=20180616152205
2https://money.cnn.com/2016/10/24/pf/financial-mistake-budget/index.html
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17859 – 2018/7/31

​According to the Social Security Administration, 90 percent of all Americans age 65 and older rely on Social Security benefits for income. It’s an important program that plays a role in nearly every retiree’s life. In fact, 50 percent of married retirees and 71 percent of singles say they count on Social Security for more than half of their retirement income.1
 
It’s likely that Social Security will play a role in your retirement. As you approach retirement, you’ll likely have to make important decisions about when to file and how much income you will need beyond your Social Security benefit.
 
Without a solid strategy in place, you could face financial challenges. You may even be unable to fund the kind of retirement you’d like for yourself. Below are a few common Social Security mistakes. If you can avoid these, you’ll minimize your risk and save yourself some financial headaches.

Filing for early benefits and continuing to work.
 
The earliest you can file for Social Security benefits is age 62. If you file before your full retirement age (FRA), however, you could see your benefits reduced as much as 35 percent.2 Despite the reduction, many retirees choose to file as soon as they’re eligible.
 
You can actually file early and continue to work, but doing so could compound your reduction. If you file before the year of your FRA, Social Security allows you to earn as much as $17,040 with no penalty. However, your benefit is reduced by $1 for every $2 you earn past that threshold.3 You can file at your FRA and continue working and see no reduction in benefits.

Relying too much on Social Security.
 
While Social Security is a helpful resource, it probably won’t fund your entire retirement. The average monthly Social Security benefit is just over $1,300. In fact, Social Security benefits are capped at nearly $2,700 per month.4
 
It’s likely that you’ll need some income above and beyond your Social Security benefit. This income could come from savings and investments, a pension or possibly even part-time work. If you don’t know where your additional income will come from, now may be the time to develop a strategy.

Failing to budget for Medicare.
 
Medicare is another valuable resource for retirees. The Medicare program offers several different types of coverage, known as “parts.” Part A, which is standard and free for all retirees, covers hospitalizations and emergency treatments. Part B covers doctor visits and outpatient services, while Part C offers supplemental coverage and Part D covers prescription drugs.
 
It’s important to remember that Part A is the only coverage that does not have a premium. All the other parts do have premiums, which are usually paid out of your Social Security benefit. Be sure to get an estimate of those premiums before you file so you can project your net Social Security benefit and budget accordingly.
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at J. Harris Financial. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.ssa.gov/planners/retire/agereduction.html
3https://www.ssa.gov/planners/retire/whileworking.html
4https://www.fool.com/retirement/2016/12/04/25-social-security-facts-figures-you-need-to-see.aspx
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
17846 – 2018/7/30

​Approaching retirement? Worried you’re behind on your savings? There’s good news. You have a powerful tool, known as a catch-up contribution, at your disposal. As the name suggests, the catch-up contribution is designed to help you catch up on your retirement savings. It’s an extra amount that the IRS allows you to contribute to your qualified accounts once you turn 50.
 
Catch-up contributions are so effective because they help you add money to qualified, tax-deferred accounts, such as your 401(k) and IRA. You don’t pay taxes on growth as long as your funds stay inside the account. That tax deferral may help your assets grow at a faster rate than they would in a taxable account.
 
You can also use catch-up contributions to reduce your taxes today. Contributions to a traditional IRA are tax-deductible. Similarly, your 401(k) contributions are deducted pretax from your paycheck. That means the contributions reduce your taxable income, which in turn reduces your tax exposure.

​Planning for your own death isn’t a pleasant exercise, but it’s too important to ignore. That’s especially true if you have children or other financial dependents. Estate planning is a critical component of any financial plan because it helps you protect those you love after you pass away.
 
An estate plan provides formal, written instructions to your loved ones on how to manage your assets after your death. It may provide financial support to your beneficiaries and loved ones. It also may direct your heirs on how to split up your assets. In some cases, an estate plan helps you protect your assets should you become incapacitated because of cognitive disorders in the final years of your life.

​Worried that you’re behind when it comes to planning for retirement? You have company. According to a recent Gallup study, more than 50 percent of Americans are concerned that they won’t be able to fund their retirement. In fact, retirement is America’s No. 1 financial worry.1
 
The good news is it’s never too late to develop a strategy and take back control of your retirement planning. Below are a few red flags that may indicate you’re not as prepared as you should be. Do any of these sound familiar? If so, now may be the time to take action. A financial professional can also help you implement a retirement strategy. 

​Retirement is a difficult financial challenge for most people, but it can be uniquely difficult for women. In fact, the National Institute on Retirement Security recently found that women age 65 or older are 80 percent more likely to live in poverty than men. Women age 75 to 79 are three times more likely.1
 
Why is retirement more difficult for women? There are a number of reasons, and many may vary based on each person’s unique situation. If you’re approaching retirement, now may be the time to identify the risks you could face. By planning ahead, you can implement a risk management strategy.
 
Below are three challenges that many women face in retirement, along with possible strategies to minimize risk. A financial professional can help you further develop your plan so you can enjoy a long and financially stable retirement.