How The Pandemic Has Impacted Retirement Confidence

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In 2021 Retirement Confidence Survey Conducted by the Employee Benefits Research Institute (EBRI) and Greenwald Research, 50% of workers and 72% of retirees say the COVID-19 pandemic hasn’t changed their confidence in achieving a secure retirement. Still, 33% of workers and 25% of retirees say it has reassured them to some degree or significantly less that they will have enough to live comfortably through retirement. Among workers who feel less confident, 3 in 10 say the pandemic has negatively affected their ability to save for retirement, due to reduced hours, income or job changes.

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Of the 40% of workers in the EBRI study who reported a job loss or other reduction in income in the past year, 60% say it negatively impacted their ability to save for retirement. As a result, these workers are less likely to believe that they are doing well enough to prepare for retirement or that they will have enough to last their entire lives. In fact, 3 out of 4 workers who experienced an income loss reported feeling stressed about preparing for retirement, while only half did not have the same experience.

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Workplace retirement plans play a vital role in fostering retirement confidence

Of those who are still working, 90% expect Social Security to pay for a portion of their expenses in retirement and 83% expect employer retirement plan savings, such as 401(k) or 403(b) plans. expect to rely on it as a source of income. retirement, compared to only 46% of retirees.

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As fewer Americans have access to traditional pension plans through their employers, more will rely on a combination of Social Security benefits, personal savings and workplace retirement savings to provide the income they need for a lifetime in retirement. Contributing the maximum amount to plans you’re eligible to participate in is one of the most effective ways to boost retirement savings, especially if your employer also offers matching contributions.

IRS announces 2022 retirement plan contribution limits

In November, the IRS announced an increase in Retirement Plan Contribution Limit for 2022. Participants in 401(k), 403(b) and most 457 plan participants can contribute up to $20,500, an increase of $1,000 over the 2021 limit. While the catch-up contribution amount remains unchanged, people age 50 and older can contribute an additional $6,500 for the year, for a maximum contribution of $27,000. (The contribution limits to traditional and Roth IRAs remain unchanged for 2022, at $6,000. People age 50 and older can contribute an additional $1,000 in catch-up contributions in 2022, for a total of $7,000. )

Your investment strategy is important

While how much you save is important to help ensure that your income lasts as long as you need it in retirement, how you invest those plan contributions is also very important. For example, a strategy that is too conservative might not get you the growth you need. Instead of eliminating risk, you are simply transferring it to the possibility that once you enter retirement, you may not have the income to support all of your goals for a period of 20 years or more. Might be possible. Keep in mind, once you retire, you no longer need the full balance of your portfolio on the day of retirement. You will reduce your portfolio over time to meet your income needs. So you want it to continue to generate income over time to help support your lifestyle for decades to come.

what is your number?

Investing over time requires a disciplined approach that is tailored to your goals, risk tolerance and time frame. For example, at Carson Wealth, our Wealth Advisors work with each client to develop a personalized Family Index number, an individualized return rate that is unique to you. It is designed to help you work towards achieving your specific goals and objectives and provides inputs starting with analysis and stress testing of your current strategy, documented goals, risk tolerance, and much more. Based on a series of

Your family index number is used to create a personalized investment strategy to meet your needs while managing risk. Using sophisticated financial planning software, your wealth advisor is able to model hundreds of scenarios to determine how likely you are to meet each of your retirement goals.

Long-term financial security is a goal most people share. Yet, accomplishing this objective requires more than hard work and luck. Financial management requires a personal and disciplined approach to pursue and protect wealth throughout life. To learn more about defining your future with confidence, download our complimentary guide, your family index number,


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