Mar 23, 2021
In this episode of Inside the Plan with the 401(k) Brothers,
Bill and Andy Bush, advisors at Horizon Financial Group, share some
tips envisioning what your retirement might look like, with
best practices based on a recent survey conducted by the Employee
Benefit Research Institute.
- 1:10 - According to a recent survey, many retirees find that
retirement does not live up to their expectations.
- 2:35 - Most retirees hoped to travel more, and obviously the
pandemic disrupted their ability to do that.
- 3:30 - People generally wish they had saved more; only 18% of
those surveyed felt that they saved more than they needed.
- 3:55 - Right now is the only time you have to plan for
- 4:45 - Even if you don’t have much to save right now, save
something, because the dollars you put away now will have the most
time to compound.
- 4:55 - Despite people wishing they had saved more, over 60%
report still being able to maintain the same or a better standard
of living as when they were working.
- 5:40 - Use the retirement savings calculators that come as part
of your 401k plan or other retirement savings plan.
- 6:03 - Six in 10 respondents wanted to only spend a small
portion of their assets, none of their assets, or grow their
- 7:36 - The biggest reason given for this in the survey is to
make sure they have enough for unforeseen costs later in
- 7:53 - Those big hits often come, but that’s why you also pay
premiums for various insurance policies.
- 8:30 - HSAs are a good thing to look into for future
- 8:37 - You should also look into having some sort of liquid
- 8:52 - 64% of survey respondents agreed that saving as much as
they could for retirement made them feel happy and fulfilled.
- 9:19 - Saving for retirement creates a lifelong habit of
spending less than you earn.
- 9:59 - Priorities can change during retirement.
- 10:40 - You have to prepare for the fact that you could have
something happen pre-retirement that impact your plan, like a
- 11:07 - 8 in 10 respondents scored their retirement
satisfaction as above average.
- 12:00 - Delineate what you want vs what you need in
- 12:39 - It’s fairly common for people to feel they’ve lost a
sense of identity once they retire, so you have to be careful of
- 13:45 - Remember that you’re retiring to something else, to
another purpose, not from one purpose to nothing.
- 14:12 - Some of the things you can control are your savings
rate and how that money is invested.
- 14:50 - You have some control over your longevity if you
regularly see your doctor and take care of your health.
- 15:55 - You have no control over market returns and taxation
and social security policies.
- 16:31 - You also control your attitude and approach, so shoot
for the positive, realistic view of where you’re headed.
3 Key Points:
- If you aren’t currently putting any money away for retirement,
start now; if you are, increase the amount.
- There are options besides a 401k for putting money aside for
- Focus on the things you can control.
- "When I run into folks that have retired, most of them say I'm
busier now than I ever was. Which is good, because they're actually
experiencing and living life to the fullest, which is what they
- "I don’t think you’re ever carelessly going to be able to spend
in retirement, but comfortably, you’ve got to do the work ahead of
- "Let’s say you retire at 67, by the time you’re 90, those
priorities inside retirement are going to be changing."
- "I’m retiring to another purpose. I’m not retiring from
something to nothing, I’m retiring to something."