In Crisis: America’s Retirement Income
In this episode, John discusses America’s retirement income sources. He reviews both the negative and positive pressures on your wealth.
John’s strength is his ability and commitment to improve the level and quality of the financial planning process.
His dedication to his clients’ growth involves an evolving strategy. His focus is to meet the demands, desires, and needs of his clients in a changing economic environment.
Highlights from this must-watch episode are:
- In the past, over two-thirds of a retiree’s income came from his or her pension + Social Security. Only one third came from personal savings.
- Sources of retirement income are now a mix of many sources. There is Social Security, earnings, asset income, pensions, and other sources such as gifts.
- Within that mix, Social Security and pensions now make up only 50% of a retiree’s income, not the 60% of yesteryear.
- A little less than 30% of a retiree’s income comes from earnings, while even less comes from asset income.
- This adds up to a crisis of retirement income.
- People are not accumulating the amount of wealth that allows them to maintain their standard of living.
At Smallwood Wealth, we look at portfolios not only on a market volatility-adjusted basis, but also on a tax-adjusted basis. We always want to be focusing on how to reduce tax and how to reduce risk. This is how we can reduce the impact of volatility-adjusted returns.
If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.
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