• 3 Trends Changing the Retirement Landscape

  • The last two decades mark a distinct time of change, even in the retirement landscape. As we continue to start 2019 off on the right foot, it is important to keep in mind current retirement trends that could affect our overall well-being during our golden years. So without further ado, here are three key retirement trends we want Americans to know about.

    1. Increase in Proposed Retirement Legislation

      It is no surprise many members of Congress place emphasis on creating legislation that will improve Americans’ retirement plans. Last year we saw sweeping retirement legislation focused on addressing employees without access to plans and who do not have enough saved to last throughout their golden years. This is key, as almost one-fifth of all Americans approaching retirement are at the low end of the readiness spectrum.

      Legislation to watch for in Washington this year includes: Retirement Enhancement and Savings Act (RESA), Retirement Plan Modernization Act, Retirement Security and Savings Act, and Automatic Retirement Plan Act. Learn more about these retirement proposals, which are a priority for both parties here.

    2. Changes to Social Security

      Social Security is another program focused on helping retirees gain a steady stream of income in their golden years. However, the Social Security Trust is set to become exhausted by the 2037, causing an increased desire to reform the program. Changes we will see to Social Security this year include:

      -Unlike existing Social Security beneficiaries, Americans turning 62 in 2019 will need until they’re 66.5 years old to claim their full retirement benefits. -Social Security tax caps will increase. Workers can now pay 6.2 percent of their taxable earnings leading to higher paychecks. -Payments to Social Security recipients will be 2.8 percent higher, stemming from the 2.8 percent cost-of-living increase, which is the highest since 2012.

    3. Desire for Lifetime Income

      The desire for lifetime income is a goal shared by many Americans, with our data showing nearly 80 percent reporting it as their number one retirement need.

      There are retirement savings vehicles that offer this benefit, even with market volatility. With fixed indexed annuities (FIAs), your savings aren’t exposed to market fluctuations, so even in a negative market return, interest credited will never fall below zero. It is possible to balance your portfolio with savings vehicles that meet your retirement needs and keep your principle secure.

    Understanding current retirement trends can help you make better decisions about your retirement strategy and planning. Check out additional retirement resources here.

    3 Trends Changing the Retirement Landscape