Utilizing Intentional Planning to Safeguard Retirement Savings
As workers and retirees live longer, many are feeling unprepared to fund the future ahead. But with strategic planning, individuals can secure their savings for the long-term.
A report from the Guardian Life Insurance Company of America found that 13% of respondents believe they’re on track to save enough for the lifestyle they want in retirement, while 45% say they’re somewhat or very far off track.
Among individuals’ top financial concerns include having retirement savings last as long as needed (41%) and having a guaranteed source of income in retirement (37%). Of those over the age of 45, 55% regret not saving sooner for retirement and 53% regret not having saved enough.
This is as Americans are living longer than ever before. A CDC Report analyzing mortality data for 2024 showed that life expectancy at birth for the U.S. population increased to 79.0 years. The average 65-year-old will also now live to age 85.
“Americans are living longer and envisioning fuller, more active lives in the years ahead, but our research shows there’s a growing gap between those aspirations and how people are preparing today,” said Andrew McMahon, chairman and CEO of Guardian.
In its research, Guardian observed how “small, intentional steps” can make a significant difference in retirement planning and savings. Among these deliberate actions include working with a financial planner, which 61% of individuals with high overall wellbeing say they do.
As living longer becomes the norm, consumers can establish healthy financial foundations earlier in their careers to secure their retirement. This includes building emergency savings and enrolling in an employer’s retirement plan.
In their 30s, consumers can build momentum by increasing retirement contributions and reviewing their disability and life insurance limits, while also working on managing or reducing debt.
The 40s is all about strengthening financial resilience, like planning for caregiving responsibilities, “stress-testing” retirement plans, diversifying savings across tax-advantaged options and protecting income and establishing an estate plan.
In their 50s, workers can make catch-up retirement contributions and consider adding guaranteed income strategies to their account before reaching their 60s and beyond, when consumers can build sustainable retirement income strategies and familiarize themselves with federal programs like Medicare and Medicare Advantage.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news.