The "retirement wave" that was expected as more baby boomers left the workplace for good did not happen in government, according to this article from the Washington Post. That's because for most government jobs, there is no mandatory retirement age. Many employees continue working out of desire or need — 15% already are eligible to retire, and the average federal retirement age now is about 62, up by more than two years over the past 10 years.
Small business owners are advised to create a plan if they intend to sell their business to fund their retirement, according to this article from Entrepreneur. Their plan should include a good budget, account for all possible income sources, and determine the required amount for their nest egg. Small business owners should also estimate the effect of inflation, account for all their retirement savings, and approximate the needed size and profitability of their business.
Investors should have a good plan on how they intend to transition toward retirement, according to this article on Kiplinger. As the focus shifts from growth and accumulation to income and wealth preservation, investors should diversify their portfolio, putting some of their assets to real estate, tax-efficient bonds, and insurance products like fixed index annuities. Hiring a fiduciary for financial advice is highly recommended to ensure that they diversify their portfolio well.
For American retirees, October is a scary month, as it is the time when the Social Security trustees usually release the annual cost of living adjustment, according to this article on CNBC. The COLA for 2016 was 0.03%, with no increase in 2015. "There's a lot of belief that there will be changes over the next four years that will negatively impact their Social Security benefit," says an expert.
To have a happy retirement, seniors should stay mentally and physically active, according to this article on personal finance website Motley Fool. They should also create a good financial plan, develop a sustainable withdrawal strategy, and cover the costs of health care. Seniors should also remain invested in dividend stocks, consider an annuity, and develop a claiming strategy that will maximize their Social Security benefits.
