What to Do When Retiring in Times of Economic Uncertainty By Brendan T. Hayes

The COVID-19 pandemic continues to leave an indelible mark on individuals and businesses across the globe, sustaining an extended period of economic uncertainty as we enter 2021. During these times, it is natural for soon-to-be retirees to become anxious and question whether they have prepared sufficiently for their golden years or if they should consider delaying retirement plans to a later date. While there is no right answer that will apply to every individual in every type of circumstance, it is important you focus your attention on the parts of your retirement plans that you can control during uncertain times.

Following are five critical steps to consider as you get closer to your planned retirement date, whenever that may be today, next year or a decade from now.

• Set a Budget. No matter how large your nest egg, it is critical you have a full understanding of all your sources of income (i.e. retirement plans, mutual funds), your recurring fixed expenses (i.e. mortgage, utilities, insurance premiums) and the required (and rising) costs of health insurance, medical bills and long-term care you can expect to pay as you get older.
• Pay Down Debt. The more debt more you owe, the more difficult it will be for you to ride out market downturns and maintain a sustainable cash flow. Start by paying down debt with the highest interest rates, such as credit card debt and personal loans. Depending on your unique circumstances, you may be able to negotiate a more favorable payment plan for outstanding medical bills and/or refinance your mortgage to take advantage of today’s historically low rates.
• Time Social Security Benefits. As a general rule, the longer you delay claiming Social Security benefits, the higher the monthly payout you will actually receive. Therefore, if you were born  between 1943 and 1954, you may start taking Social Security as early as age 62, but the amount you receive will reduce the amount you are entitled to you when you reach full retirement age of 67. Moreover, each year you can wait to claim Social Security, up to age 70, your benefits will increase 8 percent each year. Your financial advisor can run the numbers to help you determine the best age to start claiming benefits based on such factors as your age, your marital status and whether you are still working and earning wages.
• Keep an Eye on your Tax Efficiency. Income tax and capital gains tax on withdrawals and distributions you take from your investment accounts can put a significant dent in your cash flow during retirement. Working with a fiduciary financial advisor and a CPA to implement sound strategies that maximize tax efficiency and can help you increase the amount of money you and your named beneficiaries take home after taxes.
• Plan for your Longer-Term Health Care Needs. An unfortunate reality of aging is that the older we get, the more likely our health and physical well-being will deteriorate, and we will require some form of assistance to manage every-day activities. With the rising costs of healthcare and assisted living, it makes sense to consider a long-term care insurance policy to help ensure you receive the care you want in your golden years.

About the Author: Brendan T. Hayes is a financial planner with Provenance Wealth Advisors (PWA), an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs and a registered representative with Raymond James Financial Services. He can be reached at the firm’s Boca Raton, Fla., office at (561) 361-2001 or via email at info@provwealth.com.

Provenance Wealth Advisors (PWA), 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.

Brendan T. Hayes is a registered representative of and offers securities through Raymond James Financial Services, Inc., Member FINRA/SIPC.

Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors + CPAs. PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors of PWA and not necessarily those of Raymond James. You should discuss any tax or legal matters with the appropriate professional. The information contained in this report does not purport to be a complete description of the developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Investments mentioned may not be suitable for all investors. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Long-Term Care insurance policies have exclusions and/or limitations. The cost and availability of Long-Term Care insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long-Term Care insurance. Guarantees are based on the claims-paying ability of the insurance company.