Avoid Retirement Income Shortfalls

While a recent retirement industry report finds most retirees are living the lifestyle they envisioned, more than half of those surveyed say they are choosing to spend less due to worries they will run out of money.¹

The 35^th Annual Retirement Confidence Survey, the longest running report of its kind, also found that retirees are concerned about potential cuts to federal government programs for retirees, such as Social Security and Medicare. Concerns about Social Security were especially notable, as nearly all retirees surveyed rely on Social Security as a source of income in retirement. Health care costs remain a concern, with about 2 in 5 retirees saying health care expenses have been higher than expected in retirement.² 

Whether you’re nearing or in retirement, there are steps you can take to help alleviate concerns about a shortfall in retirement income.

If you’re nearing retirement:

• Take advantage of catch-up contributions in your retirement plan, including the new super catch-up contribution for workers ages 60 to 63 who have a chance to contribute an additional $3,750 to their employer-sponsored retirement accounts, for a total catch-up contribution of $11,250 in 2025.
• Pay down as much debt as possible before you retire.
• Work with a financial professional before claiming Social Security or pension benefits to help optimize these and other sources of guaranteed income in retirement.
• Meet with your financial professional to discuss options for funding long-term care (LTC) expenses, including standalone insurance policies and annuities with LTC riders.
• Create a detailed financial plan with the help of a Financial Advisor to project income vs. expenses in retirement. 

If you’re living in retirement:

• Create a detailed retirement budget to track income and expenses, understand spending patterns, and identify areas to cut back or adjust if needed.
• Ensure your investment portfolio is optimized to manage risk and returns in alignment with your goals and timeframe.  
• Explore ways to restructure your income sources to shift a portion of financial risk and provide a predictable income stream throughout retirement. 

To learn more about strategies for generating income in retirement, call my office to schedule a time to talk, or sign up directly on our calendar at www.calendly.com/kfn. Initial consultations are complimentary. 

¹ ”35th Annual Retirement Confidence Survey Reports Worker Confidence Unchanged, While Retirees Feeling Better,” 24 APR 2025, EBRI.org, https://www.ebri.org/media/press-releases/content/35th-annual-retirement-confidence-survey-reports-worker-confidence-unchanged--while-retirees-feeling-better.

² Ibid.