In order to prepare for potential means-testing surcharges, portfolios must be adjusted to account for retirement income distribution – not just accumulation. Because not all sources of income count as MAGI, knowledgeable advisors can help retirees significantly reduce the impact of these surcharges – if not eliminate them altogether, by investing in specific products that [...]
HealthView Services’ 2017 Retirement Health Care Costs Data Report shows retiree health care expenses will rise at an average annual rate of 5.47% for the foreseeable future – almost triple the U.S. inflation rate from 2012-2016 (1.9%)1 and more than double annual projected Social Security cost-of-living adjustments (COLAs – 2.6%). As this Report details, the [...]
Women face a unique set of challenges when it comes to planning for retirement. Increased longevity, lifetime income disparities, inadequate retirement savings, lower average Social Security disbursements (compared to men), rising divorce rates for those over 50,1 the potential death of a spouse (who would often handle financial planning), and dwindling employment opportunities later in [...]
Financial advisors, plan sponsors, and millions of investors rely on income replacement ratios (IRRs) – a percentage of pre-retirement income – to estimate how much will be needed to maintain desired lifestyles in retirement. IRRs have provided advisors with a streamlined, top-down approach for assessing a client’s retirement readiness without having to calculate and project [...]
HealthView Services’ 2015 Retirement Health Care Cost Data Report is derived from 50 million actual health care cases and a wide range of additional data sources. HealthView’s actuary and physician-reviewed cost-projection methodology compares year-end data sets between 2013 and year-end 2014, and the company’s rigorous bottom-up approach to calculating total retirement health care costs leverages [...]
Strategies To Reduce Medicare Income Surcharges In terms of retirement planning, many Baby Boomers have done everything right. They have calculated future expenses, invested in IRAs and 401(k)s, and labored for decades to maximize their pensions and Social Security—all to generate the necessary income to enjoy a lengthy and financially secure retirement. They believe—and with [...]
Cost Management Strategies There are a number of significant trends behind the emerging crisis in retirement health care costs. Foremost among them is health care cost inflation. While it is true that awareness and concern about retirement health care costs have been increasing, only a minority of financial advisors and their clients has begun to [...]
Medicare Means Testing? Medicare currently provides health coverage to over 50-million subscribers. Enrollment is projected to reach 64 million in 2020 and 81 million in 2030. Couple this with a projection of only 2.5 workers to every retiree by 2030, and this federal entitlement will likely dwarf all other spending programs. To increase funding, The [...]
One of the most subtle yet dynamic variables that contributes to rising medical expenses is health care inflation, which is projected to grow between 5% and 6% annually for the foreseeable future – more than twice the historic rate for Social Security cost of living adjustments (COLAs). The compounding effect of this differential over the [...]
The Next Retirement Planning Challenge At a time when many Americans are failing to save enough to achieve long-term financial security, retirement plans have little margin for error when it comes to unanticipated costs. Even though industry surveys reveal future retirees cite paying for health care as a primary retirement concern, this expense is not [...]
