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Spring 2024  Volume 16, Number 2        
 

Important Retirement Trends to Keep an Eye On

Retirement is never static. From side hustles to soaring prescription costs, the nature of retirement continually evolves. As a retiree or soon-to-be retiree, staying apprised of the latest retirement trends is essential for financial security.

More Retirees Taking on Side Gigs

A growing contingent of retirees are using side gigs to pad savings and remain engaged. Former teachers lead craft classes, nurses play music at senior centers, and accountants report golf statistics. These retirees prove non-monetary benefits also drive work beyond a paycheck, like gratification and community service. Though side incomes rarely suffice for living costs, they do provide supplementary funds and personal fulfillment.

If interested in post-career side gigs, hone your hobby skills now. Retirement will afford more time to cultivate expertise and connections for converting passions into profit.

Fewer Savings Opportunities for BIPOC Workers

Research shows Black and Hispanic employees participate in workplace 401(k) plans at lower rates than white employees. When contributing, they also save less. This translates into fewer retirement savings overall. Black employees additionally rely more heavily on 401(k) loans and hardship withdrawals, depleting resources further.

As a minority worker, consciously monitoring savings habits is essential. If employer-sponsored plans are available, make contributions a consistent budget priority. Outside retirement accounts can also help offset gaps if company offerings fall short.

Millennials Surpass Boomers in Retirement Readiness

Positive signs emerge among younger demographics, with new data showing millennials outpacing boomers for retirement preparedness. By replacing 58% of pre-retirement income through retirement plans and Social Security, median-income millennials aged 37-41 currently appear better equipped for post-work life than median-income boomers aged 61-65, projected to replace just 50 percent.

Credit is owed to the time and tools millennials have for continued savings escalations. Their outlook underscores the effectiveness of longevity, balanced investments, and automated escalation of contribution rates in cultivating readiness. Workers of all ages should note these success factors.

Medicare Part D Premiums Could Jump Over 50 percent By 2024

Seniors enrolled in Medicare Part D prescription plans should brace for dramatic hikes, with average premiums in major states like California and Florida potentially soaring over 50% by 2024. Inflation and regulations around drug pricing appear influential in the climb.

To cushion rate spikes in prescription coverage, compare plans annually during open enrollment periods and switch if advantageous options emerge. Reducing medication costs directly by enrolling in payment assistance programs or changing treatment types could also offset higher premium costs.

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In this issue:

This Just In... 3 Medigap Surprises to Watch Out For

8 Top Tips from Millionaires for Growing Your Retirement Nest Egg

What Is First-to-Die Life Insurance and Do You Need It?

How to Pick the Best Health Plan at Work

Important Retirement Trends to Keep an Eye On

 

 

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. SmartsPro Marketing and The Insurance 411 do not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher’s permission. All rights reserved. ©2023 The Insurance 411. www.theinsurance411.com Tel. 877-762-7877.