Retirement Income Planning

The economic times of today are unlike ever before.  New age retirees are up against multiple unique challenges that cannot be overlooked in the retirement planning process.

Millions of jobs have been outsourced overseas as corporations continue to downsize.  Most companies have eliminated their employee pension plans.  Social security benefits are disappearing because there are more people collecting than depositing. 

Taxes are increasing to pay for a war that will never end in the pursuit of world power.  Health care costs are skyrocketing due to the growing population of seniors and baby boomers.  To top it off Americans are living longer than ever before so they need their income to last as long as they do. 

In the next few paragraphs you will discover some of the latest retirement statistics and what we at Family Protection Group can do to help you.

Retirement Planning Challenges

There are 7 challenges you will face as a new-age retiree today.  These include:

	Longevity of Life
	Loss of Pension
	Social Security Depletion
	Taxation
	Inflation
	Skyrocketing Healthcare Costs
	Poor Financial Decisions or Lack Of

You are about to learn how each of one of these challenges affects you and how to overcome them and reach your financial goals.

Challenge #1: Longevity

	In the last 100 years the life expectancy of an American has almost doubled.*
	It is estimated that every 12 seconds an American turns 65.*
	The 80+ population is growing faster than the general population.*

These are some incredibly eye popping statistics.  We are living longer than ever before and that increases our risks of running out money.

*Sources: (1) "Beyond 50: A report to the Nation on Economic Security," Ken McDonnell, research analyst, Employee Benefits Research Institute. (2) Counsel of Life Insurance, 1998. (3) NBC News, 2000.

Challenge #2: Loss of Pension

	There are approximately 35 million Americans covered by a pension plan.*
	In 1985 there were over 100,000 plans in force, and now that number has decreased to only   30,000 plans in 2003.*

Over the past few decades there has been a major decline in the number of pension plans offered by American Employers.

*Source: "The Really Troubled Program", Time Magazine January 4, 2005.

Challenge #3: Social Security Depletion

	Over 65% of retirees rely on social security for 50% or more of their income.  And 33% rely on social security for 90% or more of their income.*
	The social security program is projected to have more money paid out than paid in by 2018. And by 2042 it is projected that the social security program will be exhausted all together.*

When Social Security was created it was supposed to be a supplemental source of retirement income for a minority of Americans.  Now it has become the primary source of retirement income for the majority

*Sources: (1) AFL-CIO. org. 2004. (2) "The Really Troubled Program", Time Magazine January 4, 2005.

Challenge 4: Taxation

Taxes represent the average American Household's single largest expense currently at an average of 30% of total household income.*

Taxes are the most serious obstacle for the American Worker and their ability to meet their financial goals.

*Source: Special Report No. 122, April 2003, Tax Foundation.

Challenge 5: Inflation

Inflation is what happens when a wedding costs as much money as it cost to buy house 50 years ago.  As the cost of goods and services increases your spending power is eroded and the scary thing is most people do not even consider inflation when saving for their goals.

For example, if you need $50,000 per year to live comfortably today, you will need $65,000 in 10 years and $97,000 in 25 years.  This is assuming the current reported rate of inflation at 3% annually.  The problem is that 3% is not accurate especially for retirees.  (Health care has been rising at approximately 5% per year.) 

Challenge 6:Skyrocketing Healthcare Costs

	Healthcare has been labeled as the #1 most critical issue in America today.*
	The average healthcare expense per person has risen from $1,067 in 1980, to $5,775 in 2003 and is expected to increase to $8,704 in 2010.*

Challenge 7: Poor Financial Decisions or Lack Of

It is estimated that 59% of workers do not have a retirement account. And 60% of adults have saved less than $10,000.*

People fall short of their goals because they procrastinated and didn’t make the decision to plan.

*Source: Dalbar, Inc. 2003

The Good News.  Family Protection Group Has Solutions.

We guide you every step of the way to ensure you make it through all 7 retirement challenges so that you can enjoy the retirement you worked so hard to achieve.  We do not want you to spend your golden years worrying about whether or not you will run out of money in retirement.  

At Family Protection Group we create a custom plan for you and your family to ensure that you are protected in the event of tragedy and headed in the direction of achieving your goals.