Retirement Facts for Gen X & Baby Boomers

Retirement can have many meanings. For some, it will be a time to travel and spend time with family members. For others, it will be a time to start a new business or begin a charitable endeavor. Regardless of what approach you intend to take, here are nine things about retirement that might surprise you. 1. Many consider the standard retirement age to be 65. One of the key influencers in arriving at that age was Germany, which initially set its retirement age at 70 and then lowered it to age 65.1 2. Every day between now and the end of the next decade, another 10,000 baby boomers are expected to turn 65. That's roughly one person every eight seconds.2 3. The 65-and-older population is one of the fastest growing demographics in the United States. In 2019, there were 54.1 million Americans aged 65 and older. That number is expected to increase to 80.8 million by 2040.3 4. Ernest Ackerman was the first person to receive a Social Security benefit. In March 1937, the Cleveland streetcar motorman received a one-time, lump-sum payment of 17¢. Ackerman worked one day under Social Security. He earned $5 for the day and paid a nickel in payroll taxes. His lump-sum payout was equal to 3.5% of his wages.4 5. Seventy-seven percent of retirees say they are confident about having enough money to live comfortably throughout their retirement years.5 6. The monthly median cost of an assisted living facility is $4,500, and seven out of ten people will require extended care in their lifetime.2 7. Sixty-four percent of retirees depend on Social Security as a major source of their income. The average monthly Social Security retirement benefit at the beginning of 2022 was $1,614.5,6 8. Centenarians – in 2020 there were 92,000 of them. By 2060, this number is expected to increase to 589,000.7 9. Seniors age 65 and over spend over four hours a day, on average, watching TV.8  Conclusion These stats and trends point to one conclusion: The 65-and-older age group is expected to become larger and more influential in the future. Have you made arrangements for health care? Are you comfortable with your investment decisions? If you are unsure about your decisions, maybe it's time to develop a solid strategy for the future. 
1. SSA.gov, 2022 2. Genworth.com, 2022 3. ACL.gov, May 4, 2022 4. Social Security Administration, 2022 5. Employee Benefit Research Institute, 2022 6. SSA.gov, 2022 7. Statista.com, August 3, 2022 8. BLS.gov, 2022 
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with Kestra Financial or Prudent Wealth. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite. 

Can Group, Private Disability Policies Work Together?

According to the Social Security Administration, a 20-year-old has more than a 25% chance of becoming disabled before reaching retirement age.1
Loss of income for such a duration has the potential to cause significant financial hardship. And while Social Security Disability Insurance may help, it's critical to understand that about two-thirds of initial applications are denied and the average SSDI payment is only $1,358 a month.2,3
Disability coverage may be available through your employer, who may pay all or a portion of the cost for your coverage.
Employer plans typically pay up to 50% of your income. This limited coverage might not be enough to meet your bills, which is why you may want to supplement employer-based coverage with a personal policy. Supplemental policies may be purchased to cover up to about 70% of your income.4
Taxation of Disability Benefits
When you purchase a personal disability policy, the benefit payments are structured to be income tax-free. Consequently, you may not be eligible for coverage that equals your current salary since your take home pay is always less.
If your employer paid for your coverage, then the income you receive generally will be taxable. If you paid for a portion of the employer-provided coverage, then the pro rata amount of the benefits you receive are structured to be tax-free.
Choices, Choices, Choices
Consider the waiting period before disability payments begin. A longer waiting period saves you money, but it also means that you may have to live off your savings for a longer period. You are the best judge of how much of this risk you are comfortable assuming.
You also may want to coordinate the waiting period with any short-term disability benefits you could have. For example, if your short-term disability covers you for 90 days, look to have at least a 90-day waiting period so that you can potentially lower the cost on the long-term policy.
Ask how a policy defines an inability to work. Some policies will say the "inability to do any job or task;" others will say "own occupation." You may prefer the latter definition so you're not forced to perform some less-skilled, lower-paid work. That type of work may not help you meet your bills.
1. Social Security Administration, 2022 2. Disability-Benefits-Help.org, 2021 3. Investopedia.com, 2022 4. Investopedia.com, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with Kestra Financial or Prudent Wealth The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite