Town Talk Features

Assets & Answers: 12.4.19

What do seniors today want financially when they retire, and how does it affect wealth strategies?

Today’s seniors want the peace of mind to do what they want, when they want. They are living longer than previous generations, so their financial plans often need to cover more years in retirement. Compared to their parents and grandparents, seniors today not only potentially have to take care of living parents, but also adult children who are still seeking their own path. They often need to incorporate unanticipated expenses as a result of these commitments. Consequently, they need a financial plan that is flexible enough to cover their own spending goals and the additional costs associated with taking care of loved ones.

We also often find many of our clients giving back to their communities, whether via board participation or actively volunteering their time and financial resources with fundraising events. With respect to facilitating their philanthropic interests, we have found donor-advised funds to be very
popular and quite useful in this regard.

—Mike Johnson
Partner
Moneta


According to a 2018 Wells Fargo Retirement Study, 63% of baby boomers are concerned about outliving their savings. This concern is common and growing as Americans are living longer and medical expenses continue to rise.

Retirees often seek wealth preservation as a top priority. They want advice to help ensure their money will allow them to live comfortably in retirement. The study also found that approximately 40% of retirees will either need to work longer to meet retirement expenses or lower their cost of living. As people age, many expenses they face, like out-of-pocket health care costs, can rise at a faster pace than the retirement income they earn.

Finding the right wealth adviser is important. You should enter retirement with a planning mindset. Running retirement planning model scenarios to see where you stand today can help you prepare for the future. When taking multiple factors into consideration, you can help plan for sufficient assets to retire and possibly pass on to heirs.

—Maurice Quiroga
Senior vice president
Wells Fargo Private Bank

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