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A ‘Silent Crisis’ Predicted for Future Retirees

June 20, 2023

Most of the time, our news headlines revolve around current events. We don’t often hear about looming problems or disasters until it’s already too late to stop them. But in a recent Chairman’s Letter, sent to BlackRock investors, CEO Larry Fink warned of a coming “silent crisis” set to soon impact retirees. 



In fact, Fink clarified that this problem, “doesn’t make headlines or attract attention because it’s not immediate. It’s not this year’s — or even next year’s — problem. But it is a crisis. And the longer we delay the conversation about it, the larger the crisis grows.” He urged investors to become more aware of the coming crisis, and what to potentially do about it. 


A number of factors have evolved throughout recent decades, and combined, they create a “perfect storm” for retirement income planning. 


Longer lifespans. People are living longer, which of course is a good thing. But from a financial planning point of view, specifically retirement income planning, we must remember that longer lifespans could mean a longer retirement. And so, those retirees must plan for a retirement income that lasts longer. 


A falling birth rate. At the same time, the birth rate has been falling for years. We need a rate of 2.1 babies born to every woman in order to maintain current population numbers. But the current birth rate has fallen to 1.7 in the US, 1.5 in Europe, and 1.2 in China. Because taxes from current workers support programs like Social Security, a smaller working population in the future means tight budgets for those programs. 


Failure to plan. When reviewing the above two factors, it becomes clear that the onus for retirement income planning now falls more squarely on each individual’s shoulders than before. And yet, a quarter of all American workers have zero retirement savings. Among those who have saved for retirement, the average retirement fund amounts to just $65,000. 


Even worse, those who do manage to save for retirement often borrow or withdraw from those funds early, whether due to an emergency or to accomplish a goal like purchasing a home. The currently high cost of living, starkly out of balance with average wages, adds fuel to the fire. 


In the newsletter, Fink recommended not only active saving, but an aggressive focus on growth. A conservative savings approach simply might not be enough to build the nest egg needed to retire in coming years. 


To learn more about saving and investing for the future, call us to schedule an appointment. We will help you review your current retirement income planning and make changes to hopefully help you overcome these obstacles. 

The Benefits of Hybrid Life and Long-Term Care Insurance Policies

March 18, 2025
Planning for both future healthcare needs and financial security can be challenging. A hybrid life and long-term care (LTC) insurance policy offers a unique solution by combining life insurance benefits with coverage for long-term care expenses. Depending on exact needs and circumstances, this type of policy might be a smart choice for retirees and their families. What Is Hybrid Life and Long-Term Care Insurance? Hybrid policies blend life insurance coverage with long-term care benefits, providing financial support whether you need extended care during your lifetime or leave behind a death benefit for your beneficiaries. Unlike traditional long-term care insurance, which operates on a "use it or lose it" basis, hybrid policies ensure that your investment isn’t wasted if you never need long-term care. Key Benefits of Hybrid Policies Dual Protection – These policies provide coverage for both long-term care costs and life insurance payouts, ensuring that funds are used efficiently. Guaranteed Benefits – If long-term care is not needed, your loved ones will still receive a death benefit payout. Premium Stability – Traditional LTC insurance premiums can rise unpredictably, but hybrid policies often have fixed or limited payment periods. Flexible Use of Funds – Policyholders can use long-term care benefits for various needs, including home care, assisted living, or nursing home care. Potential Tax Advantages – Benefits used for qualified long-term care expenses are often tax-free, providing additional financial relief. Is a Hybrid Policy Right for You? A hybrid life and LTC policy is ideal for those who: Want to ensure their long-term care needs are covered while still leaving an inheritance. Prefer predictable premiums without the risk of losing their investment if care isn’t needed. Are concerned about rising healthcare costs in retirement. Have funds available for a lump-sum or limited-time premium payment. Plan for Your Future Today Choosing the right insurance policy is crucial for securing your financial future and protecting your loved ones. If you’re interested in learning more about hybrid life and long-term care insurance, contact us for expert guidance on finding the best coverage for your needs.

Burial Insurance vs. Traditional Life Insurance: Which Do You Need?

March 11, 2025
When planning for the future, many people consider life insurance to ensure their loved ones are financially protected after they pass away. However, not all life insurance policies serve the same purpose. Two common types are burial insurance and traditional life insurance, and understanding the differences can help you make the right choice for your needs. What Is Burial Insurance? Burial insurance, also known as final expense insurance, is a type of insurance policy designed specifically to cover funeral and burial costs. Policies typically range from $5,000 to $25,000, ensuring that expenses such as cremation, a memorial service, or a casket are paid for without placing a financial burden on family members. While burial insurance provides peace of mind for covering end-of-life expenses, it has limited benefits and does not offer financial security beyond funeral costs. It won't help cover other expenses like: Medical bills left behind Living expenses for surviving family members Mortgage or debt payments Replacement income for dependents What Is Traditional Life Insurance? Traditional life insurance, which includes term life and whole life policies, offers a broader financial safety net for beneficiaries. These policies provide a larger death benefit, often starting at $100,000 or more, which can help with: Paying off outstanding medical and credit card debt Replacing lost income for surviving spouses or children Funding education costs for children or grandchildren Covering long-term living expenses Unlike burial insurance, traditional life insurance is meant to provide lasting financial protection for your family rather than just covering funeral costs. Which One Do You Need? The best option depends on your financial situation and what you want your insurance policy to accomplish. If your primary concern is ensuring your funeral and burial costs are covered without burdening your loved ones, burial insurance may be sufficient. If you want to protect your family’s financial future, cover major expenses, and replace lost income, a traditional life insurance policy is the better choice. In some cases, individuals choose to have both types of policies—burial insurance for final expenses and traditional life insurance for broader financial protection.
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