Geisinger Medical Clinic Reedsville benefits patients
BY GREG WILLIAMS Sentinel reporter gwilliams@lewistownsentinel.com
REEDSVILLE – Geisinger opened its 65 Forward Health Center in 2023 to better serve its older adult patients. Now, it has brought all of its services from the former Geisinger Medical Clinic Big Valley and Geisinger Pharmacy Belleville to one convenient location: the Geisinger Medical Clinic Reedsville.
The Big Valley primary care, laboratory and pharmacy services have moved from their Belleville location to 10 Gateway Drive, off Route 322 in Reedsville. The Reedsville clinic
opened in August 2022 and includes primary care, lab, radiology services and an on-site pharmacy as well as
the Geisinger 65 Forward Health Center.
“We’re thankful to be caring for all of our pa-
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tients from the Big Valley area in Reedsville,” said Michelle Holt, associate vice president of Geisinger Community Medicine.
“One of Geisinger’s top priorities is making sure our patients receive high-quality care in modern and convenient locations.”
The 31,724-square-foot Reedsville facility offers a total of 34 exam rooms, with 24 designated for primary care and 10 to serve 65 Forward’s older adult patients.
Primary care providers: David Braum, DO; Natalia Hanson, MD; Catherine Michaels, PA-C; and Shawn Miller, CRNP, have welcomed Lowell Stoltzfus, MD; Danielle Rheel, PA-C, and their entire care team
to the Reedsville location.
The clinic is accepting new patients of all ages and is open:
—Monday, Tuesday and Thursday, 7 a.m. to 6 p.m.
—Wednesday, 7 a.m. to 7 p.m.
—Friday, 7 a.m. to 5 p.m.
To contact the primary care office, call 1 (800) 2304565.
The Reedsville medical lab and imaging services are open daily from 8 a.m. to 4 p.m., with walk-ins accepted. Patients also do not need to be Geisinger Medical Clinic Reedsville patients — the site accepts orders from other providers to use lab, ultrasound, X-ray and other services.
The Reedsville Pharmacy team continues to
provide all the same services that its patients and community members have come to expect in its new location, including:
—Free home delivery of prescriptions and over-thecounter medications — get your meds in three to five business days.
—Curbside pickup for prescriptions and over-thecounter items, with prices often lower than large retail chains.
—Medication counseling and education.
—Help with insurance benefits.
The pharmacy’s hours are 8:30 a.m. to 5 p.m. Monday through Friday. To contact the pharmacy, call (717) 363-9315.
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Fresh Flavors Tour, Lancaster County, PA We Aug 13
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$699
$239
$75
Live music, local crafts, food vendors and more!
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$125
Mount Rushmore & The Badlands
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$159
Participants can travel the world as they experience the food, art, dance, fashion and music of different coun-tries. In the past, visitors have been treated to karate demonstrations, sari wrapping les-sons, dance performances and more! This idea is still devel-oping and more information will be posted on our website as details are finalized.
Mackinac Island & More
May 12-17
*limited seats available! Noah 30th Anniversary Sight & Sound Theatre, Lancaster, PA Wed, May 7 (11am) $249 Wed, Jun 18 (3pm) $249 Sat, Aug 2 (3pm) $249 Tue, Sep 23 (3pm) $249 Sat, Oct 11 (11am) $249 Fri, Nov 14 (3pm) $249
$1,599
June 10-15
Cape Cod & Plymouth
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Summertime in DC
$3,999
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June 20-22 $799
Grand Ole Opry 100th Anniversary Celebration
Nashville, TN
Aug 4-9 $ 2,499
Join us for a memorable journey to Music City as we celebrate a century of country music
at the Grand Ole Opry! This special bus tour offers an unforgettable experience filled with music, history and Southern hospitality.
Explore the Outer Banks Sep 22-26
Music Heritage Tour
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York City Do As You
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An interactive Halloween Murder Mystery Weekend!
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$739 Hotel conveniently located in midtown, just a short walk from Times Square and other popular attractions.
Itineraries / cost subject to change. Multi-day trips shown per person, double occ.
Mount Rushmore & The Badlands
June 10-15
$3,999
Embark on an unforgettable adventure through South Da-kota’s breathtaking landscapes, where history and nature intertwine. This tour takes you to the iconic Mount Rush-more, a monumental tribute to American democracy, and the stunning Badlands National Park, renowned for its unique geological formations and rich wildlife. Includes ground transportation to Philadelphia, pre-night hotel, air and transportation in South Dakota.
Photo courtesy of GEISINGER
The Geisinger Medical Clinic Reedsville is located off Route 322.
Centers in Motion keep active people on the go
BY GREG WILLIAMS Sentinel reporter gwilliams@lewistownsentinel.com
YEAGERTOWN – If you are an area senior and looking to stay active, the Centers in Motion will certainly keep you on the go. The four centers always have an activity scheduled that will keep you moving. Here are their calendars for the remainder of January:
Four Seasons Senior Community Center
47 CJEMS Lane, Mifflintown
Thursday, Jan. 23 – 9 a.m. dominoes; and 10 a.m. to 1 p.m. Card Game Day.
Friday, Jan. 24 – 10 a.m. exercise; 11 a.m. to 1 p.m. puzzles; and 12 pm. Wii video games.
Monday, Jan. 27 – 10 a.m. exercise; 11 a.m. to 1 p.m. Yahtzee.
Tuesday, Jan. 28 – 9 to 11 a.m. chair volleyball; and noon chair stretching.
Wednesday, Jan. 29 – 10 a.m. exercise; and 11 a.m. to 1 p.m. movie and dinner.
Thursday, Jan. 30 – 9 a.m. dominoes; and 10 a.m. to 1 p.m. Card Game Day.
Friday, Jan. 31 – 10 a.m. exercise; and Nursing Students Day.
Lewistown Senior Community Center
515B Knepp Ave., Lewistown
Thursday, Jan. 23 – 9
a.m. cookbook; 10 a.m. Greenwood Village; and 12:30 p.m. exercise group.
Friday, Jan. 24 – birthday bash with music by Greg DeVicchis; 10 a.m. pinochle.
Monday, Jan. 27 – 9:15 a.m. bingo; and 10 am. pinochle.
Wreath-making was one of the holiday activities at area senior centers, like the Milroy Senior Center, as Rebecca Deppen (from left), Kay Eisenhart, Sandy Adams, Linda Barr, Judy Shawver, Terry Stence and Betsy Bistline hold up their works of art.
Tuesday, Jan. 28 – 9:30 a.m. show and tell; and 12:30 p.m. exercise group.
Wednesday, Jan. 29 –9:15 a.m. bingo; and 12:30 p.m. darts.
Thursday, Jan. 30 –9:30 a.m. games and cookbook; and 12:30 p.m. exercise group.
Friday, Jan. 31 – 9:15 a.m. prize bingo; 10 a.m. pinochle; and 11 a.m. Sherri from LUMINA Center.
McAlisterville Senior Community Center 158 Lions Den Drive, McAlisterville
Thursday, Jan. 23 – 10 a.m. bingo; and noon to 1 p,m. Card Players Day.
See Motion / Page 5
Photos courtesy of MIFFLIN-JUNIATA REGIONAL SERVICES CORP. – THE CARE NETWORK
Betsy Bistline (from left), instructor Terry Stence and Alberta Cavanaugh assemble holiday wreaths at the Milroy Senior Center.
PRIME TIME
Motion
Continued from Page 4
Friday, Jan. 24 – 10 a.m. crosswords; and 11 a.m. care and share.
Monday, Jan. 27 – 10 a.m. card games; and 11 a.m. Phoenix Rehab.
Tuesday, Jan. 28 – 10 a.m. bingo at Southview.
Wednesday, Jan. 29 –10 a.m. Cprs; and 11 a.m. center meeting.
Thursday, Jan. 30 – 10 a.m. sight and sound video; and noon to 1 p.m. Card Players Day.
Friday, Jan. 31 – Nursing Program; 11 a.m. car and share; and noon Baptist Church.
Milroy Senior Community Center 283 Broad St., Milroy
Thursday, Jan. 23 – 9:15 a.m. bingo: take the pot; and 12:30 p.m. group exercise.
Friday, Jan. 24 – Birthday Dessert Day.
Monday, Jan. 27 – 9:15 a.m. Pinochle Club.
Tuesday, Jan. 28 – 12:30 p.m. group exercise.
Wednesday, Jan. 29 –games of choice.
Thursday, Jan. 30 – 9:15 a.m. bingo: bring a prize; and 12:30 p.m. group exercise;
Friday, Jan. 31 – Nursing Students presentation.
For more information about the centers or their events, visit www.mymjrsc.com.
Area seniors board buses quite often for trips organized by the Mifflin-Juniata Regional Services Corp. — The Care Network.
Harlan, senior community services supervisor at the Mifflin-Juniata
al Services Corp. — The Care Network, delivered Christmas meal boxes to Steve
of the Juniata County Food Pantry in Mifflintown. The meal boxes were given to home bound consumers in Juniata County. We’re now on
North Ridge Center for Personal Care...
Locally Owned by Adam & Jessica
Dimm Administrator Robin Naylor
Photos courtesy of MIFFLIN-JUNIATA REGIONAL SERVICES CORP. – THE CARE NETWORK
Beth
Region-
Beers,
Seven steps to forecasting your cash flow needs in retirement
CHRISTINE BENZ Morningstar
New retirees frequently rhapsodize about the joys of tossing their alarm clocks into the trash and filling their days with whatever activities they find gratifying. But if they’re honest, most new retirees find the financial aspect of the retirement transition to be a little jarring.
While retirees are often counseled to estimate that they’ll spend 75% to 80% of their working incomes in retirement, a paper by David Blanchett, formerly of Morningstar and now at PGIM, found that higher-income, higher-saving households may need just 60%, or even less, of their preretirement income during retirement, while lower-earning, lower-saving households may need closer to 90%.
It may be difficult to forecast your actual income-replacement needs, so here are the key steps to take as you do so:
Step 1: Find a realistic baseline for your income
If you’re close to retirement and seek to maintain a standard of living in retirement similar to what you had while you were working, using your current salary as a baseline is reasonable. But if you’re younger — say, in your 40s — it may be wise to nudge up your baseline income for retirement-planning purposes, because your current income may not be reflective of what you’ll want to spend when you eventually retire.
Not only are you apt to receive cost-of-living adjustments as the years go by, but career gains could also lead to a higher salary over time, which you
may want to “replace” in retirement. As Blanchett noted in his paper, the average college-educated individual will make a 50% higher salary at retirement than he or she did at age 25. Gains in salary over time are less pronounced for people with lower levels of educational attainment.
Step 2: Subtract your savings rate
Take a look at what percentage of your salary you’re saving — or expect to save by the time you retire —and subtract that from your baseline salary amount.
It’s typically easier for high-income individuals to save a greater percentage of their salaries during working years than low-income individuals.
A household saving 20% of its income will see its income-replacement rate drop to 80% right out of the box, even without factoring in any planned lifestyle changes, such as downsizing homes.
If you’re several years from retirement, it may be that you’ll kick up your savings rate if your income grows.
Step 3: Subtract any tax reductions
Because they’re no longer paying Social Security or Medicare taxes, many people realize tax savings when they retire. Those gained savings tend to be more pronounced for higher-income workers than lower-income ones. More-affluent households may see a bigger percentage drop in taxes in retirement than lower-income households because they have greater control over their taxable income now that they’re no longer earning a paycheck; the less they pull from their portfolios, the less they’re taxed on.
Step 4: Subtract anticipated housing-cost reductions
Housing costs are another line item with the potential to change substantially in retirement. Is your plan to come into retirement without a mortgage, for example? Or perhaps you intend to relocate or downsize in some fashion? Even though the main goal of downsizing may be to add the home-sale proceeds to your retirement kitty, it
they may be more substantial.
Don’t assume a reduction in lifestyle-related expenses in retirement without crunching the numbers. A heavy travel schedule or an expensive hobby or other expenditures could offset cost reductions on line items like food.
Step 6: Add higher health care costs
matically toward the end of your or your partner’s lives.
Step 7: Add a fudge factor
can have the salutary effect of reducing property taxes and lowering outlays for insurance, utilities, and maintenance. As a senior homeowner, you may also be able to qualify for a reduction in your property taxes, depending on where you live.
Step 5: Factor in lifestyle changes
Retirement-planning guides often urge retirees to factor in changes in other expenses, such as commuting, clothes for work, and meals out while on the job or due to busy work schedules. For some households, these changes may be minimal, but for others,
Health care is one major area where retirees are likely to see an increase in expenses. A recent Fidelity study showed that the average lifetime out-of-pocket healthcare outlay for a 65-year-old retiring today would be nearly $160,000, and that figure doesn’t even include long-termcare expenditures.
Higher healthcare costs later in life are the key factor in what Blanchett calls “The Retirement Spending Smile.” That’s the tendency for household expenses to be on the high side just after retirement, dip in mid-retirement, then head back up toward the end of life as healthcare costs increase for some older adults. If you’re going without long-term-care insurance, your household’s total healthcare-related outlay could spike dra-
Working through each of these steps may get you closer to your actual income-replacement rate. At the same time, it’s worthwhile to approach the exercise with the knowledge that there’s much about your future spending that you can’t foretell. Wild cards such as long-termcare costs, random home repair bills and providing help to adult children or families can unexpectedly increase your financial outlays in retirement. The potential for those unanticipated expenses argues for nudging your own income-replacement rate a bit higher to allow for some wiggle room in your planning.
This article was provided to The Associated Press by the investment research website Morningstar. Christine Benz is the director of personal finance and retirement planning at Morningstar. For more personal finance content, go to https:// www.morningstar.com/personal-finance.
Morningstar/AP
It may be difficult to forecast your actual income-replacement needs.
Several ways to bridge a retirement shortfall
CHRISTINE BENZ Morningstar
If you want to get yourself thoroughly depressed, spend a little time looking at statistics about Americans’ retirement preparedness.
In Vanguard’s most recent How America Saves report, the average participant balance in Vanguard plans was $134,000 in 2023, but the median balance was just $35,000. For workers with Vanguard plans who were between ages 55 and 64, the average and median balances were $245,000 and $88,000, respectively, in 2023. Roughly half of people between age 55 and 66 have no retirement savings at all, according to U.S. Census Bureau data, and women are in worse shape than men from the standpoint of retirement preparedness.
Clearly, many people are hurtling toward a shortfall, or living through one. And for people who are dramatically undersaved and largely reliant on Social Security for in-retirement living expenses, there’s no getting around the fact that their standard of living in retirement is going to be lower than it was when they were working.
Rather than looking to a single blockbuster solution to help make up for a savings gap, what if you were to consider a little bit of several prudent strategies—being willing to cut your standard of living a bit in retirement, working a bit longer, and investing a bit better, for example?
Employing more modest changes around the margins of your plan means they’re apt to be more palatable from a lifestyle perspective, too; the thought of working until age 70 might not appeal but hold-
be particularly advantageous as you enlarge your portfolio’s stake in safer investments like bonds, where absolute investment returns, while better today than just a few years ago, are apt to be relatively low. Moreover, the differential between very strong- and very poor-performing investments can boil down to expenses.
Employ a flexible approach to portfolio withdrawals
ing out until age 67 may be more doable.
Work longer
As pre-retirees have no doubt heard, working even a few years past traditional retirement age can deliver a threefer on the financial front, allowing additional savings and tax-deferred compounding, fewer years of portfolio drawdown, and perhaps delayed Social Security filing. Being willing to work part-time in retirement is another variation on this idea. Yet, as attractive as working longer looks by the numbers, it’s a poor idea to make it the sole fallback plan, as many who plan to work longer are not able to.
Delay Social Security
This is another exceptionally powerful lever, al-
lowing individuals to pick up an increase in benefits for every year they delay Social Security filing beyond their full retirement ages up until age 70. In order to pull this off, however, an individual may need to work longer or draw from a portfolio earlier.
Save more before retirement
The good news is that from a household budgetary standpoint, many individuals are best equipped to crank up their savings rates later in their careers. They’re often in their peak earnings years, and other big-ticket preretirement expenses, such as home purchases and college funding, may be in the rearview mirror.
The bad news is that with a shorter time horizon, those newly invested
dollars will have less time to compound before they’ll need to withdraw them. That doesn’t mean that late-start retirees shouldn’t bother with additional contributions: Even an additional $5,000 invested per year, earning a modest average return of 4% for 10 years, would translate into more than an additional
$60,000 in retirement.
Lower investment costs
This one’s a gimme. Lower mutual fund expenses are correlated with better returns, so why wouldn’t you work to bring your portfolio’s total costs down? Lowering costs can
Retirees seeking the same dollar amount, adjusted for inflation, year after year in retirement will generally want to be more conservative with their starting amount for portfolio withdrawals. Meanwhile, those who are willing to employ a dynamic withdrawal approach, varying withdrawals based on how their portfolios have performed, can generally take a higher starting withdrawal percentage, as illustrated in our team’s annual retirement-spending research.
This article was provided to The Associated Press by Morningstar. For more personal finance content, go to https://www.morningstar. com/personal-finance.
Morningstar/AP
Being willing to cut your standard of living, working a bit longer and investing a bit better could help bridge a retirement shortfall.
What older adults need to know about vaccines for a healthy new year
Family Features
Around the new year, many people set goals for better health. People ages 65 and older can kick off a healthy new year by getting vaccinated for flu, COVID-19 and RSV. These respiratory infections can become more dangerous as people age. Vaccines can help older people risk less severe illness and do more of what they enjoy.
Those who provide care for older adults can support their health by helping them get vaccinated now. That’s especially important because older people have a higher risk of getting very sick or even dying from flu, COVID-19 and RSV.
Vaccines help protect older adults from serious illness
As people get older, their ability to fight off infection decreases, putting them at higher risk for complications if they get a respiratory infection. They are more likely to get severely ill and need medical or hospital care from flu, COVID-19 and RSV. Those living in long-term care facilities often have health issues that make flu, COVID-19 and RSV serious risks.
The Centers for Disease Control and Prevention (CDC) urges all people ages 6 months and older to get this season’s flu and COVID-19 vaccines.
Those ages 75 and older - or ages 60 and older with certain health issues or who live in a nursing home - should get one dose of an RSV vaccine if they haven’t had it before. It’s safe to get vaccines for flu and COVID-19 (and RSV, for those who are eligible) all at the same time. Any side effects from the vaccines are usually mild and
vaccinated.
go away on their own in a few days.
Get vaccinated for a healthy new year
Vaccines are a great way for older people to start the year by protecting their health. Most deaths from flu, COVID-19 and RSV are in people ages 65 and older, and the risk grows with age. However, vaccines cut your risk of being in the hospital for flu or COVID-19 by about half and for RSV by about 70%, according to the CDC.
Those who look after older loved ones can help them avoid severe respiratory illness by helping them get vaccinated. In addition to getting vaccinated, there
are other ways to help prevent serious illness. When around others indoors, use fans or open windows for better ventilation. Wearing a mask, using physical distancing and washing your hands often can also help. You can use home tests to check for COVID-19 if you have symptoms.
Visit cdc.gov/RiskLessDoMore to learn more about flu, COVID-19 and RSV vaccines. Order your free COVID-19 test kits (up to four per household) at COVIDTests.gov.
Talk with your doctor about which vaccines are right for you or an older adult you care for. Or go to vaccines.gov to get started and find a pharmacy near you.
Photo courtesy of Shutterstock
Those who provide care for older adults can support their health by helping them get
Financial concerns for over-50s: Experts react to eye-opening AARP findings
LIAM GIBSON Wealth of Geeks
A new AARP survey finds that 20% of adults aged 50 and above have no retirement savings, and more than half (61%) are worried they will not have enough money to support themselves once they stop working.
High living costs, astronomical public debt, and chronic unpreparedness have eroded the foundations of retirement for years. Now, people’s faith in their post-work futures is dwindling, too.
More than one-third (37%) appear worried about basic expenses, such as food and housing, while seven in 10 (70%) express concerns about prices rising faster than their income.
BlackRock Chairman Larry Fink recently declared America in a fullblown retirement crisis. He named it one of the “mid-21st Century’s biggest economic challenges.” This bleak view goes well beyond Wall Street. Main Street folks are feeling it, too.
In a recent NIRS survey of working-age Americans, almost four-fifths (79%) agree the United States is in a retirement savings crisis, up from just 67% in 2020.
While there is growing consensus that the nation has a problem, there must be more certainty on what the average worker should do to optimize their position. Financial advisors offer insights into tackling chronic unpreparedness and how to tailor retirement planning based on one’s unique circumstances.
out retirement savings is a distressingly common scenario. It is less a result of financial negligence or ignorance as much as simple misfortune. Catastrophic events like chronic illness, business failure, or longterm unemployment often break a well-grown nest egg. For those dealt a bad hand, life circumstances impede their ability to prepare for their post-work financial future.
The savings marathon may seem endless, but it’s a race that experienced financial advisors assure consumers they can win.
“For those rapidly approaching the ‘retiree cliff’ with no savings, it’s never too late to start, but urgent action is needed,” says Jorey Bernstein, CEO of Bernstein Investment Consultants. “Even small contributions can make a difference over time.”
Inflationary Fears
Among those who have saved enough, concerns that enough may not be enough still linger.
Due to changing economic circumstances, reaching adequate retirement is trying to hit a moving goal. Among the clear majority of those over 50 who worry prices are rising faster than their income, many worry they will run out.
“The fear of rising prices outpacing income is valid, especially for those on fixed incomes,” says Bernstein. “Cutting expenses and considering relocating to lower-cost areas can help mitigate this risk. However, these strategies have limitations, and maintaining a diversified investment portfolio that keeps pace with inflation is crucial.”
Brian Sokolowski, managing partner and CIO of Bluebird Wealth Management, concurs that infla-
two evils.
“Over-savers have more flexibility to spend more on their wants rather than only on their needs,” says Spiros Vassilakos, Private Wealth Advisor at Athenian Private Client Group. “This would also give them an opportunity to give and leave more to their heirs and next generation.”
-
tion and longevity risk scare many retirees. Yet he urges fearful clients to question their investment assumptions.
“We have found that many retirees view their date of retirement as an end date to their investment plan,” Sokolowski says. “We counsel our clients to view retirement as the beginning of liquidity needs on their retirement assets, but that their investing time horizon stretches out further to their life expectancy.”
“This view allows for meaningful inclusion of equities remaining in their portfolios — client risk tolerance and circumstances permitting — as equities are better inflation hedges than fixed income over long periods of time.”
Employer-sponsored funds are among the most reliable indicators of retirement readiness. AARP reports that Americans with workplace plan access are 15 times more likely to save for post-work life.
Experts suggest maxing out salary contributions to a 401(k) plan to fast-track retirement wealth with powerful employee ben-
efits such as tax-deferred growth. Elective contributions and employer matches can also supercharge savings, though there are limits.
“Certainly, if you are a high-income earner and wish to continue the same lifestyle in retirement, the annual 401(k) maximum contribution is likely insufficient to maintain that same -level of spending in retirement,” says Lisa Whitley, owner of MoneyByLisa.
“Individuals should aim to save at least 10-15% of their income, including employer contributions, for retirement,” says Bernstein. “Additional savings vehicles, such as IRAs or taxable accounts, can further bolster retirement readiness.”
Don’t Go Too Far
Despite these retirement woes, saving too much for retirement can become counterintuitive.
“It is absolutely possible to over-save for retirement,” says Stephan Shipe, Ph.D., CFA and Lead Advisor at Scholar Financial Advising.
Unfortunately, we have
worked with clients who didn’t have a good handle on the impact of their savings, especially once compound interest was working in full force, and ended up in a situation where they likely could’ve retired years earlier.”
While not ideal, over-saving has its perks and remains the lesser of
The retirement crisis is well underway, and for those who lack considerable net worth, healthy savings will be paramount for long-term success amid an uncertain future. Many Americans must prepare for their post-work years. By prioritizing consistent savings and diversifying investments to hedge against inflation, workers give themselves their best chance to thrive in their golden years.
This article was produced by Media Decision and syndicated by Wealth of Geeks.
Episcopal Gardens
APARTMENTS
• INDEPENDENT LIVING designed for persons aged 62 & over and qualified persons with disabilities
• INDEPENDENT LIVING designed for persons aged 62 & over and qualified persons with disabilities
• LOCATION conveniently located just off Rte. 22 between Harrisburg and Lewistown
• LOCATION conveniently located just off Rte. 22 between Harrisburg and Lewistown
• AFFORDABLE rent is based on 30% of income, new energy efficient windows
• AFFORDABLE rent is based on 30% of income, new energy efficient windows
• PET FRIENDLY small house pets are welcome (policies enforced)
• PET FRIENDLY small house pets are welcome (policies enforced)
• PEACEFUL quiet country setting with social activities.
• PEACEFUL quiet country setting with social activities, weekly grocery shopping trips, monthly “FUN” trips and more.
Wealth of Geeks
In a recent NIRS survey of working-age Americans, 79% agree the United States is in a retirement savings crisis.
Americans’ retirement ‘magic number’ hits record high
CHHAVI AGARWAL Wealth of Geeks
Americans’ ideal retirement savings target reaches unprecedented heights, soaring well beyond inflation rates. Northwestern Mutual says future retirees’ current target of $1.46 million is more than twice the amount they thought would suffice when the pandemic started.
The life insurance company recently released their 2024 Planning & Progress Study, part of their proprietary research series that explores Americans’ attitudes, behaviors and perspectives across a broad set of issues impacting their long-term financial security.
“People’s ‘magic number’ to retire comfortably has exploded to an all-time high, and the gap between their goals and progress has never been wider. Inflation is expanding our expectations for retirement savings, and putting the pressure on to plan and stay disciplined,” explains Aditi Javeri Gokhale, Chief Strategy Officer, President of Retail Investments and Head of Institutional Investments at Northwestern Mutual.
“Making a ‘magic number’ appear isn’t about waving a wand; it’s about using time-tested techniques and learning from a skilled advisor.”
In every demographic, there exist significant disparities between individuals’ retirement savings goals and their current savings.
How Much Has It Changed
Today, American adults estimate they’ll require $1.46 million for a comfortable retirement, marking a 15% surge from last year’s
$1.27 million. This figure surpasses the current inflation rate of around 3%. The arbitrary “magic number” skyrocketed 53% in just five years, a significant departure from the $951,000 target reported in 2020.
Breaking it down by generation, Gen Z and millennials anticipate requiring over $1.6 million for a comfortable retirement. Meanwhile, high-net-worth individuals — those with over $1 million in investable assets — speculate they will need nearly $4 million.
While the typical U.S. adult’s retirement savings declined from $89,300 in 2023 to $88,400 in 2024, savings remain notably lower than the 2019 peak of $98,800.
Gen Z Starts Saving Early
The research reveals, on average, Americans start saving for retirement around age 31. However, Gen Z begins saving much sooner, at age 22, nearly a decade earlier. In contrast, boomers and older generations state they started 15 years later, around age 37. Millennials and Gen Xers began their retirement savings journey at ages 27 and 31, respectively.
With a head start — nearly a decade earlier than previous generations — Gen Z hopes they’ll be able to retire sooner. This foresight will likely benefit these groups and generations after, as three in 10 American millennials and Gen Z respondents report they might live to age 100.
“These numbers tell a fascinating story about the profound shift in financial planning that has taken shape in America,” explains Javeri Gokhale.
“Young people today recognize the value of retirement planning and building wealth early on in life
and are getting a significant head start over their parents and grandparents. At the same time, Gen Z is redefining retirement and signaling that they plan to have long and fulfilling post-career lives. The good news is that they are investing earlier so they can save the money they need to enjoy it.”
The research explores pressing challenges associated with retirement planning and shows that baby boomers and Gen Xers lack confidence in their preparedness.
How to Better Prepare for Retirement
There are many helpful ways to stay abreast of retirement planning. Utilizing savings strategies, incorporating online services, or communicating with professionals can inform retirement preparations, boost bank balances, and bolster economic knowledge and market understanding.
Start Tax Planning
Only three in 10 (30%) Americans have a plan to minimize the taxes they pay on their retirement savings.
“Putting money into a 401K may not be enough to retire comfortably if the financial plan doesn’t address the impact of taxes on retirement income,” says Javeri Gokhale. “Most people don’t realize that their retirement income may be taxed about 20% or 30% when they withdraw and spend it. When they recognize the impact, it’s often too late for them to adjust.”
Respondents’ top 10 strategies employed include:
Making strategic withdrawals from traditional and Roth accounts to stay
within a lower tax bracket (32%).Utilizing a mix of traditional and Roth retirement accounts (30%). Making strategic charitable donations to reduce taxable income (24%). Taking advantage of a Health Savings Account (HSA) or other tax-advantaged healthcare account (23%).Using products like permanent life insurance or annuities for their tax benefits (22%).Conducting Roth conversions before taking Required Minimum Distributions (RMDs) or Social Security (19%).Employing qualified charitable distributions from an IRA (17%).Contributing to other tax-advantaged accounts, such as a 529 plan (14%).Leveraging the basis paid into the cash value of permanent life insurance to stay within a lower tax bracket (13%).Taking advantage of a Qualified Longevity Annuity Contract (QLAC) to set aside funds for later in retirement (13%).
Put More Into Instruments
In 2024, younger employees are limited to contributing $23,000 to their 401(k) s and $7,000 to their IRAs. However, individuals aged 50 and above can contribute up to $30,500 to a 401(k) and up to $8,000 to an IRA.
Get a Side Hustle
Portfolio development and retirement savings are crucial parts of financial stability, but exploring additional avenues to boost your earnings, such as a side hustle, can be beneficial for those wanting to boost income without the red tape and time constraints of a traditional employment position.
A 2023 Bankrate survey states that 39% of Americans supplement their income through side gigs.
Engaging in freelancing or consulting can offer extra income, especially if you’re lagging in retirement savings.
Reevaluate Obligations
As you approach retirement age, ensure you habitually reassess priorities and consider putting yourself first. Letting go of unnecessary obligations and making fewer sacrifices can prolong well-being and happiness. While this doesn’t mean abandoning responsibilities, it can promise a renewed life balance that prioritizes personal needs. Taking care of yourself allows you to better enjoy life and make the most of your time. Selfcare isn’t selfish; prioritizing oneself can build a more fulfilling and meaningful life.
Are You Ready for the Future?
Proactivity, like utilizing sound financial strategies and adopting a side hustle, can help individuals navigate retirement planning and its complexities while achieving financial security and peace of mind in their golden years.
article was produced by Media Decision and syndicated by Wealth of Geeks.
Jeffrey Davis, Esquire
