Workers face many concerns as they prepare for retirement, but one of the most pressing is regarding Social Security. Nearly three-quarters (71%) of workers say they're worried Social Security won't be available to them once it's time to retire, a recent survey from Wells Fargo discovered.

With no shortage of gloom-and-doom headlines promising the program's demise, it's understandable to worry about the future. Especially if you're going to be depending on your benefits to help make ends meet in retirement, you may be concerned that you won't be able to afford to retire if Social Security is no longer around.

However, although the Social Security program has its fair share of troubles, there's no need to worry about its future. Here's why.

Image source: Getty Images

You've likely heard that Social Security is bankrupt and that your future benefits are at risk. The good news, though, is that the program itself isn't going anywhere.

When you pay your Social Security taxes as an employee,that money isn't stored in an individual account just for you, which you can tap once you're ready to start claiming benefits. Rather, it's paid out to current retirees in the form of monthly benefit checks. Then once you're ready to retire, the checks you'll receive will be funded by younger workers' taxes.

That means that as long as workers continue paying their taxes, there will always be cash that can be paid out as benefits. In other words, the program is not on the verge of collapse, as many soon-to-be retirees are concerned about.

The not-so-good news, however, is that the program is facing a slight hiccup: There's currently not enough cash to go around. With baby boomers retiring en masse (to the tune of around 10,000 workers every day, according to Pew Research Center), a lot of money needs to be paid out as benefits. And with retirees living longer than ever, today's seniors are receiving more monthly checks than generations past.

As a result there's more money flowing out of the system than coming back in. To cover the shortage, the Social Security Administration has been dipping into its trust funds. However, those funds are expected to run dry by 2035, the most recent report from the Social Security Administration Board of Trustees revealed. Once those trust funds are depleted, the only money that will be available to pay out in benefits will be what comes in from taxes -- and it's currently estimated that future taxes will be enough to cover only around three-quarters of scheduled benefits.

There are a couple of potential solutions to the cash shortage plaguing the Social Security Administration. Congress could raise taxes, for instance, which would provide more money that can be paid out as benefits. Or the Social Security Administration could cut benefits because there's not enough money to go around.

Nobody knows exactly what will happen in the future, but if you're nearing retirement age, it's a good idea to be prepared for any possible scenario. If you're banking on being able to survive primarily on Social Security benefits and then realize your checks are going to be slashed by 25%, that could wreck your entire retirement plan.

One way to prepare for potential cuts is to bulk up your savings so you won't be forced to rely too heavily on Social Security. Your benefits are designed to replace only around 40% of your preretirement income anyway, so if you play it even more conservatively and assume they may make up only a small portion of your income once you retire, you won't be left in the lurch if your checks are reduced.

Another option is to take advantage of delayed retirement credits. If you claim benefits at your full retirement age (FRA), you'll receive the full benefit amount you're theoretically entitled to. But the Social Security Administration rewards those who delay claiming benefits until after their FRA, up until age 70. If you have a FRA of age 67 and you wait until age 70 to claim, for instance, you'll receive an additional 24% each month on top of your full amount. In the event that benefits are reduced, the boost you'd receive by waiting to claim can take the sting out of the cuts.

It can be frightening to think about the future of Social Security, but the positive news is that you'll still have some form of benefits to depend on once you retire. It may not be quite as much as you'd anticipated, but if you start adjusting your plan now to account for potential reductions, you can prepare yourself for any obstacles life throws your way.

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71% of Workers Are Worried About Social Security. Here's Why You Shouldn't Be - The Motley Fool

Having a sense of your retirement expenses is essential for crafting an accurate retirement plan, but it's not always easy to figure out. Who knows what kind of medical expenses you might incur or how much you'll spend on entertainment? You don't know how your lifestyle or interests might change between now and then.

There really is no way to solve that problem, but looking at averages can give you a jumping-off point for crafting your own retirement budget. A recent Employee Benefit Research Institute (EBRI) study looked at how households with adults in three age ranges -- 50 to 64, 65 to 74, and 75 and older -- spent their money over one year. Here's what it found.

Image source: Getty Images.

Housing costs tend to decrease over time. Individuals in the 50 to 64 range, many of whom are likely still working, spent $25,000 on average on housing in 2017, while those 65 to 74, many of whom have likely retired, spent just $21,000. Adults 75 and older spent the least on housing, at just $18,000. This could reflect an increasing number of adults paying off their mortgages over time or possibly downsizing to a more affordable living situation in retirement. The EBRI study found that while only 40% of 2016 homeowners aged 50 to 64 did not have a mortgage, that number rises to 60% for adults aged 65 to 74 and 79% for adults 75 and older.

Interestingly, housing costs still made up about 45% of household expenditures for all age ranges. This makes sense when you consider that total household expenditures tend to drop as people age, so while individuals are spending less on housing, it still takes up a similar proportion of their smaller overall budgets.

You would think that food spending would remain roughly the same for every group because regardless of your age, you still need to eat. But the EBRI survey found that food expenditures decrease as people age. Households with adults 50 to 64 spent an average of $5,100 on food in 2017, while those with adults 75 and older spent just $3,800. Those 65 to 74 fell in the middle at $4,400.

Healthcare is the one cost that people expect to rise in retirement, but interestingly, the EBRI survey found that average healthcare expenditures remained pretty constant for each age group -- around $4,000 in 2017. But median household healthcare expenditures do rise over time, as does the percentage of average annual spending on healthcare.

When you consider that the average household size decreases as people age yet healthcare spending remains constant, this fits in with our thinking that healthcare costs rise as we age. The Center for Medicare & Medicaid Services found that adults 65 and older spent nearly three times as much as working-age adults on healthcare in 2014, and while medical inflation hurts everyone, it hits those who require the most medical care the hardest.

Some older adults might also spend more on healthcare than their working-age counterparts because Medicare doesn't cover some of the services their workplace health insurance plan provided. Things like prescription drugs, hearing aids, and dental and vision coverage aren't included in Original Medicare, so seniors must either pay for these costs out of pocket or purchase supplemental coverage, which means another monthly healthcare payment.

Making efforts to remain healthy while you're young can help keep your healthcare costs lower, but you never know when an unexpected injury might sideline you, so it's best to plan for increased healthcare spending in retirement, even if you believe you're a healthy person.

Transportation expenses also decline as people age. Adults 50 to 64 spent the most at $7,600 on average, which makes sense when you consider that those who are still working have to travel back and forth to their office every day. Adults 65 to 74 spent just $5,300 on transportation, and adults 75 and older spent a mere $3,600, on average.

Clothing expenditures decrease slightly by age but remain fairly level when you consider that household size also tends to decrease with age. Adults 50 to 64 spent about $1,400, on average, on clothing while adults 75 or older spent just $1,100. Those in the middle spent $1,300. This makes sense because clothing is a necessity, regardless of your age.

Entertainment spending remained relatively constant for adults in the 50 to 64 and 65 to 74 age groups, with both spending about $5,400 on entertainment. If we assume that household size declines over this period, that indicates slightly increased spending on entertainment for 65- to 74-year-olds. This makes sense because new retirees have more time to devote to hobbies.

Entertainment costs declined among adults 75 and older. The EBRI survey found they spent just $3,600 on entertainment, on average. But the percentage of household expenditures on entertainment remained pretty close to the other age groups, dipping down to just 8.3% from 10.5% for 65- to 74-year-olds and 10.2% for the 50- to 64-year-olds.

The money people spend on gifts and charitable contributions actually increases as they age. The difference is slight. Adults 50 to 64 spent just $2,900 on this while adults 65 to 74 spent $3,000, and adults 75 and older spent $3,100. But when you consider that overall expenses tend to decline with age, the proportion of income spent on giving rises significantly.

The above figures can give you a baseline to gauge your basic expenses in retirement -- but remember, these are just averages. If you live in an expensive city, you might have to figure in more for housing. If you plan to enjoy a quiet retirement at home, you might not need to spend as much on entertainment. Use the above figures as a starting point, but adjust them up or down based on how you envision your senior years.

Once you have your estimates, you have to consider inflation, which will drive up the cost of all living expenses over time. The inflation rate varies from year to year, but 3% per year is a safe estimate. The above figures are all in 2017 dollars, and inflation in 2018 and 2019 to date has driven up costs by approximately 4.2%, so if you're using the above estimates, add 4.2% to get your estimated costs in 2019 dollars. Then add 3% for each year between now and your retirement to estimate how much your living expenses might cost you by the time you're ready to leave the workforce.

Keep in mind that your annual expenditures will probably decrease over the course of your retirement. You might use the above figures for the 65 to 74 age group to estimate costs in the early years of your retirement and the 75 and older estimates to plan for costs later on in your retirement. Then, add the two together to figure out your total retirement expenses.

You won't need to save all this money on your own because Social Security will cover some of it and your employer may offer a pension or a 401(k) match. If you're saving for retirement, your investments are also likely to grow between now and then, which will relieve some of the savings burden on you.

So don't panic if your total retirement expenses seem like more money than you can save on your own. Just focus on getting the most accurate estimate you can first and then go from there.

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How Will My Expenses Change Between Now and Retirement? - The Motley Fool

Do Texas legislators read what they vote for? Do they do their homework?

The passage of House Bill 2820 gives us reason to doubt.

Written by Rep. Dan Flynn, R-Van, and sponsored by Sen. Bryan Hughes, R-Mineola, the bill repealed the requirement for financial product sellers to register with the Teachers Retirement System. It also eliminated the already catastrophic 2.75% annual expense ceiling on products sold to teachers in their 403(b) accounts.

Basically, the new law declared open season in Texas. It put a target on the backs of 635,000 public school teachers and employees. It made Texas safe for investment predators. The likely result will be poorer retirements for teachers and a multitude of lawsuits that may eventually cost Texas taxpayers hundreds of millions.

Isnt this odd?

Nope. Its business as usual.

This isnt the first time Texas has refused to regulate financial products offered to Texas teachers. Seventeen years ago, another bill attempted to rein in the high expenses for teacher 403(b) products. An early version of that bill put limits on expenses and charges.

The limits never made it to the final bill. At the last minute, the Texas State Teachers Association objected to the changes. Hard to believe, but the organization did.

So vendors had to register, but expense charges werent reduced. Front- and back-end commissions werent eliminated. Surrender charges werent eliminated on most options. The only limit was a sky-high annual expense of 2.75%.

Now the requirement to register products has been removed. Even the very rich limitation of 2.75% in annual charges has been removed. The only good news is that teachers arent required to save through a 403(b) plan. They can invest elsewhere with better results.

Has something happened to make offering punitively high-cost retirement products in 403(b) plans (or anywhere) a good idea?

No. If anything, tolerance for consumer abuse has been disappearing everywhere but Texas. Beyond that, workers with 401(k) plans have enjoyed major improvement in plan menus and a long trend to lower expenses. We might ask, for instance, how Exxon Mobils 17,000 employees enjoy a 401(k) plan with expenses of 0.01% to 0.04%, while 635,000 Texas teachers and school employees must choose between thousands of options, many priced over 2% a year?

Beyond the 403(b) plans of Texas, the entire securities industry competes to lower costs. And I mean really lower them. It is now possible for consumers to buy exchange-traded index funds commission-free on platforms like Vanguard, Schwab and Fidelity. So while savers are in a new age of no-commissions and 0.05 percent annual cost IRAs, Texas teachers are corralled in 403(b) plans dominated by high-cost choices.

Some readers may be skeptical of reduced tolerance for consumer abuse. So consider this: Earlier this month, the Securities and Exchange Commission began an investigation into the sales practices for 403(b) plans in school districts. AFTER a recent SEC meeting, Dan Otter, the founder of 403bwise.org, told me: The SEC is really on this issue.

More recently, the New York State Department of Financial Services announced that it, too, is going to investigate sales of annuities to 403(b) accounts.

In fact, two research studies demonstrate that Texas legislation favoring unregulated vendors is exactly what should not be done. Both studies are public information. They are readily available as quick downloads, even to Texas legislators.

In 2010, the TIAA-CREF Institute published a paper comparing what it called open-access states (like Texas) to controlled-access states. In controlled-access states, providers must bid for access. The researchers found that expenses in the controlled-access states were half as high as in open-access states. They also said that long-term outcomes for teachers were likely to be massively better.

While open-access Texas had 54 providers, 172 products and 3,367 investment options in 2009, controlled-access Arizona had one provider, three products and 22 investment options. Iowa, another controlled-access state, had five providers, 10 products and 135 investment options.

Texas had an average expense of 1.75% a year. Thats double the 0.88% average expense in Arizona and the 0.85% average expense in Iowa.

The TIAA-CREF researchers calculated that the difference would materially improve the retirement income for teachers in lower-expense states.

Aon Hewitt, an investment-consulting firm, came to similar conclusions in a 2016 study, How 403(b) Plans are Wasting Nearly $10 Billion Annually, and What Can Be Done to Fix It. Its study suggested using controlled access and avoiding choice overload by having a limited menu of options in the plan. It also suggested an emphasis on target date and low-cost core index funds.

Texas is a poster child for choice overload, confusion and deceptive sales practices. The TIAA-CREF Institute found 3,367 investment options in 2010. Today the number of options is three times larger at 10,112.

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Bill declares open season on Texas teachers' retirement funds - The Dallas Morning News

Though retirement is an exciting milestone, it can be a major source of uncertainty. Living on a fixed income can introduce financial challenges, while declining health can cause not just money-related upheaval, but logistical trials as well.

It's not surprising, then, that 50% of older Americans worry about becoming a burden to their families as they age, according to a recently published Nationwide survey. If you share similar concerns, here are a few critical steps to take.

You need a plan for how you'll receive care should you require it to function as you get older. To this end, it helps to have honest conversations with loved ones in advance. Even if you have family members who live close by, you can't assume that they'll be willing to step up and offer the type of in-home support you might eventually need. Setting proper expectations can help you and your loved ones handle that transition once it comes to be.

IMAGE SOURCE: GETTY IMAGES.

If you don't have family members who are able or willing to become caregivers for you when you're older, then you'll need to outsource that task. Unfortunately, the costs involved could prove astronomical.

Here's what annual long-term care costs look like today, according to Genworth's 2019 Cost of Care Survey:

It's for this reason that long-term care insurance can serve as a lifeline when you're older. But if you wait too long to apply, you'll risk getting stuck with prohibitively expensive premiums, or getting denied altogether.

The best time to apply for a long-term care policy is during your early to-mid-50s. If you're relatively healthy at that point, you'll likely manage to not only get approved, but also snag a reasonable rate on your premiums.

Even with long-term care insurance, it pays to have extra money on hand to cover some of the expenses that aging might bring about. It's a good idea to boost your retirement savings as much as possible, and you can do so by taking advantage of catch-up contributions in your IRA or 401(k). Currently, workers 50 and older can set aside up to $7,000 a year in the former, and $25,000 a year in the latter. These limits are $1,000 and $6,000 higher, respectively, than the limits assigned to workers under the age of 50.

Here's how maxing out a retirement plan later in life might help you: If you're 60 years old with the intent of retiring at 67, maxing out an IRA for seven years will give you an additional $53,600 to work with in retirement, assuming your investments generate a conservative average annual 3% return during that time. Do the same for a 401(k), and you'll be sitting on an additional $191,600, assuming that same investment window and return.

If you're worried about burdening loved ones as you age, you're in good company. But if you make an effort to secure long-term care insurance and pad your savings, you'll be less reliant on family to take on the demands of caregiving.

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50% of Older Americans Share This Retirement Fear - The Motley Fool

If you've stashed most of your nest egg in your 401(k), the last thing you want is for taxes to blow up in your face when the time comes to start taking withdrawals.

Remember when you first started earning a decent salary, and it seemed as if everybody your parents, your boss, the nice lady in HR and, of course, your tax preparer all told you to put as much money as you could into your employers 401(k) plan?

Grab the employer match, they said. Get the growth that the market has to offer. And take advantage of the tax break, for crying out loud. Why not avoid paying taxes on that money now, while youre in a higher tax bracket, and worry about it later, when youre in retirement?

But what they didnt tell you then (because they probably didnt know) is that as you kept stuffing money into that tax-deferred account, you were chaining yourself to a ticking tax time bomb.

Because theres a good chance your tax rate wont be lower when you retire. And if you dont do something to help defuse the situation before you start withdrawing money from that 401(k) (or SEP IRA or 403(b)) for retirement income, you could be sending a sizable chunk of your nest egg to the IRS every year.

Dont think so? Here are just a few points to consider:

So, you basically have two choices. You can ignore the data, the trends and the experts, and see what happens. Or you can incorporate some tax strategies into your retirement plan now, bring some balance to your portfolio and maybe even get yourself to a tax rate of 0% with these steps:

As with most investment decisions, the right strategy for you will be based on your personal situation.

One option is to do a Roth IRA conversion moving money from a traditional IRA or 401(k), paying taxes on it at todays rates, then letting the funds grow inside the Roth knowing the principal and earnings will never be taxed again. You can do this all at once or, to keep the tax bite lower as you go, convert the funds over a period of years.

Another option is to take the money out of your tax-deferred account and put it into a cash value life insurance policy from which you can take policy loans tax-free. (This is a more complex strategy, however, with some risks, so its best done with the help of an experienced financial professional.)

No matter which strategy you choose, if youre concerned about the money thats piling up in your tax-deferred accounts, dont delay. Help defuse the ticking tax bomb before it can blow up your retirement plan.

Investing involves risk, including the potential loss of principal. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Policy loans and withdrawals will reduce available cash values and death benefits and may cause the policy to lapse or affect guarantees against lapse. In the event of a lapse, outstanding policy loans in excess of unrecovered cost basis will be subject to ordinary income tax. Tax laws are subject to change and you should consult a tax professional. All withdrawals from qualified accounts are subject to ordinary income tax and, if taken prior to age 59, may be subject to a 10% federal additional tax.

Kim Franke-Folstad contributed to this article.

John Creekmur is the senior wealth adviser and co-founder of Creekmur Wealth Advisors (www.creekmurwealth.com). He is a CERTIFIED FINANCIAL PLANNER professional (CFP).

Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Are Your Taxes Set to Explode in Retirement? (Strategies to Help Defuse the Problem) - Kiplinger's Personal Finance

When Jimmy Burrow decided to retire after three decades coaching football, he figured it would be worth it to watch his youngest son play football for LSU in person.

Like LSU itself, Jimmy Burrow got more than he could have ever imagined.

Joe Burrow is the nations No. 1 Heisman Trophy candidate on the nations No. 1-ranked college football team. And Jimmy Burrow, who grew up in neighboring Mississippi, is having no retirement remorse.

Obviously the only reason I retired was to be able to go watch Joe play and be with my wife, Robin, because she goes to every game, Jimmy Burrow said Thursday. I would have been happy and content to do that.

But there is so much more to this whole thing due to Joe and LSUs success that has all added to the fun for us.

Some of the media spotlight glaring on Joe has splintered off to his parents. Jimmy Burrow, who spent the past 14 seasons as defensive coordinator at Ohio University, is a weekly regular on the morning drive Off the Bench sports talk show on WNXX-FM 104.5 in Baton Rouge. Robin Burrow, an elementary school principal, was interviewed this week by Sports Illustrated.

We appreciate all the interest and support Joe is getting, Jimmy Burrow said.

The support extends to the small town of The Plains, Ohio, where the Burrows live. Right outside of Athens, where the Ohio University campus is, The Plains is about the same distance from Ohio States campus in Columbus as Tiger Stadium is from the Mercedes-Benz Superdome.

Though its Ohio U. and Ohio State country, Jimmy Burrow said LSU yard flags have sprouted up in their town like autumn mushrooms. A local restaurant is giving discounts to customers wearing purple.

That makes us feel good, Jimmy said. People come up to us at games in Baton Rouge and say theyre from such and such in Ohio, but they just wanted to see him play.

If Joe and the Tigers keep playing like this, they will wind up in the College Football Playoff. And there is an excellent chance they could play Ohio State, Joes former team ranked No. 3 behind LSU and Alabama in The Associated Press poll.

Such a matchup might put the LSU yard signs in Ohio to the test.

Joe would probably never admit it, but thats probably his dream matchup, Jimmy Burrow said. And mine. And the entire state of Ohio. Were hoping that can happen.

Meanwhile, this concurrent Heisman Trophy thread is running through the season. LSU has three national championships in the modern or wire service era 1958, 2003 and 2007 but only one Heisman winner: Billy Cannon in 1959.

Right now, Joe Burrow is better than even money to join Cannon in that super-exclusive LSU club. For someone who has spent his entire life in football Jimmy Burrow was a defensive back at Nebraska when Johnny Rodgers won the Heisman in 1972 and a coach there when Eric Crouch won in 2001 what is it like for your youngest child to be this close to college footballs most prestigious prize?

Its a little overwhelming to turn on the TV and see theyre talking about it nonstop on the sports channels, Jimmy Burrow said. Its a little scary, too.

Jimmy Burrows son is the Heisman favorite because his team is winning and hes completing passes at a record clip. Joe Burrow is connecting on 78.8 percent of his passes 80 percent against AP Top 25 opponents. Hes on a pace to break the FBS record of 76.7 percent set in 2008 by Texas Colt McCoy.

Jimmy Burrow isnt about to divulge what he would do as a defensive coach to try to slow Joe down. But he does know what has made his son so effective.

There are a lot of different options with the development of their wide receivers, Burrow said. Actually, he has four or more good choices with their top three wide receivers and (tight end) Thad Moss turning into a very dependable receiver. And Clyde (Edwards-Helaire) has developed as a runner and pass catcher.

Then add the improvement of the offensive line. Those guys have played great. Add to that a new scheme and a quarterback who has done it his whole life, and its kind of a perfect storm for a quick turnaround.

Of course, none of this was so a year and a half ago when Joe decided to transfer to LSU from Ohio State, choosing the Tigers over in-state Cincinnati.

Jimmy Burrow said his son relished the bigger challenge.

(Cincinnati) was probably the natural choice, Jimmy Burrow said. That was probably the easiest. But Joe ended up choosing LSU because he wanted to play at the highest level. He always wanted a chance to play for a national championship. Ultimately, thats why he chose LSU.

I wondered how Jimmy thought Joe was dealing with all the adulation and praise. He said his son self-insulates himself from that.

He doesnt read the clippings, Jimmy said. He doesnt look at the internet to read about himself. A few times I sent him things about him on the internet but he said, Dad, I dont want to read that. It makes me feel good hes focusing on whats at hand.

Whats at hand next is LSUs Nov. 9 showdown with No. 2 Alabama in Tuscaloosa. Jimmy and Robin Burrow will be there, cheering on their youngest boy.

At some point, Jimmy will probably think about a coverage or a blitz or a short-yardage package he would call. But then hell think how much he has enjoyed the journey of this season, and what may still be to come.

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Rabalais: Joe Burrow's dad Jimmy is loving retirement ... it isn't hard to figure out why - The Advocate

You're finally there: retirement. You worked hard to gain your freedom and youre enjoying it. Life is good. But you gradually notice a nagging feeling that something is missing. Then it dawns on you. You miss work.

You're not alone. A study published by Cambridge University Press revealed that about 25% of retirees return to the workforce, with half of them doing so within five years. And according to The RAND Corporation, more than half of workers 50 or older reported they would come out of retirement for a good opportunity. What's drawing people back isnt necessarily money, but non-financial rewards. Theres a gravitational pull toward meaningful work thats strong in the second half of life.

Work offers important benefits beyond pay, such as purpose, meaning and identity. Theyre easily taken for granted. Strip them away and theyre sorely missed. Once that happens, you may feel attracted to the work environment again. However, you dont want to return to a job that overwhelms your time.

How To 'Unretire' With Balance

It's surprisingly easy to decide to unretire. However, the transition takes careful planning. Work is constantly changing, and during retirement, you have likely changed as well. Your priorities are different. So, here are four steps to ensure your unretirement protects your balance:

1. Be clear about why you're going back.

Amy is an attorney who retired at 62. Retirement left her recharged but bored and antsy. After a year, she missed the impact of her pro-bono work. Amy realized she didnt really need retirement -- what she needed was a sabbatical. She decided to go back, not to the prestigious law firm in the city but to a local nonprofit organization with a mission she deeply cares about. It allows her to do good while preserving some of the flexibility she loved in retirement. Fewer hours and more impact.

Once you hop back on the merry-go-round of work, things will start spinning faster and faster. Before you return, clarify the real reasons you've decided to jump back into the game. Keep your "why"front-and-center.

2. Design your ideal workweek 2.0.

Forget your old work life, and visualize what a great week will look like now. How much time will you invest in work? Set your boundaries. While you cant control all variables, having a clear picture of what you're shooting for provides helpful guideposts.

3. Lock down the habits that keep you at your best.

What activities did you enjoy most in retirement? Unretiring doesnt mean you have to let go of all of them. What adjustments can you make to keep them in your life? List the non-negotiables and the modifications you need to make. Draft a weekly schedule, and prioritize your commitments to self-care.

One of my coaching clients, Sean, 63, returned after three years in retirement to become a consultant at a startup. He was intrigued about joining a company disrupting the industry he spent his career in. He was drawn to mentoring the younger team he would be working with. He negotiated a four-day workweek, but it meant a return to commuting.

Sean did not want to give up the workout routine he had built. By getting an agreement to start his workday later than he used to, he was able to preserve the workouts hed come to love. Then, he discovered how to optimize the commute better than he did before retiring. Instead of cranking through emails, he realized what he needed now was downtime. Hes using the time to think, not do. As he told me, he had to accept that he was no longer a superhero and that recharging was more important to him at this stage in life.

4. Seek advice.

Develop a succinct learning agenda on what you need to know in your return. Identify who in your network can help and who you can go to in your workplace. Look for opportunities for mutual mentoring. You may need help from others, but your knowledge can be very helpful to them. For example, the savviest technology person can be a great resource, but he or she could also benefit from your experience.

Going back to work is often unchartered territory, especially for those whose careers are less likely to be interrupted for childrearing. Many women, for instance, have experience returning to work after a career break. Seek out people who have navigated that transition and ask for their advice. While your circumstances may be different, you'll learn valuable tips you can use.

Retiring from retirement is a big decision. Advance planning can help you build work-life balance and create the best of both worlds in your second act.

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How To Retire From Retirement And Keep Your Balance - Forbes

Katie Brockman, The Motley Fool Published 7:00 a.m. ET Oct. 21, 2019

Buzz60s TC Newman has tips and tricks for saving money - just in time for the holidays! Buzz60

When you're trying to balance multiple financial responsibilities at the same time, saving for retirement may seem like a lesser priority than your other tasks. In fact, 42% of workers say they don't want to think about retirement planning until they get closer to retirement age, a survey from the Transamerica Center for Retirement Studies found.

Although retirement planning is not the most exciting topic to think about, you should be thinking about it long before you actually leave your job. If you put off saving or don't know whether you're on track, by the time you realize you're behind, it might be too late to do anything about it.

However, if you want to ensure you're as prepared as possible for retirement, there's one simple thing you can do every year: Give your savings a checkup.

6 in 10 Americans are behind on retirement savings: Here's how to catch up

If you're saving anything at all for retirement, it's easy to feel like you're on the right track simply because you're doing something. But if you're blindly throwing money in your 401(k) or IRA without knowing whether that's going to be enough to retire comfortably, you may be putting your financial future in jeopardy.

Saving for the future isn't a set-it-and-forget-it situation. To make sure you're doing enough to prepare, you'll need to check in on your savings at least once a year, then make any necessary adjustments to ensure you'll reach your goal by retirement age.

What exactly does a yearly checkup look like, though? To start, double-check that your retirement goal hasn't changed. Even if you've already calculated the amount you should have saved by the time you retire, that number isn't set in stone. Your annual living expenses could increase, meaning you'll need to save more for retirement to keep up your current lifestyle. Or you might decide you're going to move to a more expensive city once you retire, which can completely change how much you'll be spending each year in retirement.

Run your numbers through a retirement calculator to get an estimate of how much you should be saving, as well as what you'll have to save each month to reach that goal. If your overall retirement goal has changed, you might find you need to be saving more or less each month. It's better to find that out early while you still have time to adjust your plan rather than wait until you reach retirement age and realize you don't have enough saved to live comfortably.

A new apple is debuting at grocery stores: It's expected to be a game changer

Say you're performing your yearly checkup and realize you'll need to start saving more than you can afford if you want to reach your goal. It may be tempting to give up, thinking that there's nothing you can do now to catch up. But it's still important to save what you can, even if it's not much.

The hard truth is that depending on just how far behind you are, it might not be possible to save as much as you need. If you're in your 50s with nothing saved, for example, you likely won't be able to save $1 million in the next 10 or 15 years. However, that doesn't mean you can't save anything, and having even a little saved for retirement is far better than nothing.

If you're behind on your savings, you'll need to set a new, more realistic retirement goal. Think about your future expenses in retirement and consider whether there are ways to reduce them. If you'd planned on taking several expensive vacations, for instance, consider nixing those and finding more affordable ways to entertain yourself in retirement. Or if you're currently living in an expensive city, it might be worthwhile to think about moving to dramatically lower your everyday living expenses. Of course, you can't predict all your future costs, especially when retirement is still decades away. But by planning on living a more frugal lifestyle, you can get by on less during your golden years.

Next, see if there are ways you can start saving more now. If you don't already, begin tracking your spending to determine if there are areas of your budget where you can cut back. Even if you feel like you don't have a penny to spare for retirement, you might be surprised by how much room you have in your budget if you look for it. Saving even a few dollars per week in each spending category can potentially amount to hundreds of dollars per month, so it may not be as painful as it sounds to cut costs.

Finally, make sure you're investing your money wisely. When you don't have much extra cash to put toward retirement, every dollar counts. If you're throwing your money in a savings account earning 1% annual interest, your savings won't go nearly as far as if you're investing it in a 401(k) or IRA earning a, say, 8% annual rate of return.

Managing your money can be tough, but it's even more challenging when you don't know whether you're on the right track to reach your goals. To ensure your financial situation is as healthy as possible, make sure you're regularly giving yourself a checkup. It can only help you save more for retirement, but it can also give you peace of mind that your finances are in order and that you're doing everything possible to be successful.

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The latest research paints a grim picture of what retirement could look like for millennials and we should all be concerned. In the developed world, no country has a higher concentration of millennials than the United States. They represent Americas future, but many have gotten off to a worse start than previous generations.

Millennials earn less annually on average ($40,500) than similarly aged individuals just a decade ago ($43,300). They have less wealth than previous generations at the same age and more debt than young workers owed 30 years ago.

The Urban Institutes Retirement Security in 2050 report takes a close look at how todays retirees compare to projections about millennials when they begin to hit retirement age 30 years from now. It is anticipated that millennials will have higher average annual lifetime earnings ($50,000 versus $37,000 for those who have already reached retirement). Retirement incomes are also projected to rise from an average of $60,000 a year now to $73,000 for millennials.

But while these forecasts may be cause for optimism, the fate of some millennials probably wont be as rosy. Current retirees face an already-alarming 24% poverty rate. As bad as it is today, that number is projected to rise to 30% for Generation X and millennial retirees, according to the Urban Institute. Those without college educations and with lower lifetime earnings will be the ones who find their outcomes much less secure.

Millennial workers tend to have high levels of education, typically associated with better savings rates and longer careers, due to less-physically demanding jobs. Working more years also postpones retirement dates and allows a longer time horizon for savings accumulation.

Yet many millennials dont have a great comfort level with financial matters. More than half of women in the millennial generation say they feel overwhelmed by their financial situations, with 29% of men agreeing with that sentiment, according to research by the Society of Actuaries.

Read: Why is it still so hard for women to save for retirement?

Millennials also face many obstacles. The Brookings Institution explores the negative impact for many of this generation who started their careers during the Great Recession (from which GDP growth has still not recovered) and increasingly work in contingent jobs made popular by the gig economy, which often offer fewer benefits, including no way to save for retirement. Many also took out substantial student loans to pay for higher education. A typical graduate with $30,000 in school debt stands to risk having $325,000 less in savings when it is time to retire.

Millennials are increasingly choosing to delay major life milestones like Homeownership, marriage, and having children. Although they will work longer, they will also live to be older than their parents and grandparents meaning their retirement savings will have to last longer.

Minorities face significant additional disadvantages when it comes to preparing for retirement. Only just over one-third of blacks and Hispanics have retirement accounts, compared with nearly two-thirds of white Americans, according to the Brookings Institution. Even when they have access to employer-sponsored retirement plans, less than half of Hispanics are expected to participate, as compared with two-thirds of blacks and three-quarters of whites.

Not only are Hispanics less likely to have retirement accounts, but they are also projected to work fewer years than whites, leaving less time to accumulate savings. Estimates suggest 82% of whites will work for more than 30 years, compared with 58% of Hispanics.

Although nonwhite families have seen some progress, experiencing larger income and wealth gains than their counterparts, they still have less income and wealth. More concerning is that whites are still projected to be more likely to experience upward income mobility than other ethnic groups.

According to the National Institute on Retirement Security, only 55% of millennials are eligible to participate in an employer-sponsored retirement plan, compared with 77% of Gen X and 80% of baby boomers. For those who do have access to retirement savings plans, they will largely depend on defined-contribution plans that mean they will have to make their own decisions about saving and investing for the future.

This lack of access to simple retirement planning options helps explain why 66% of millennials have nothing saved for their so-called golden years. While many large employers already make defined-contribution plans available to their employees, too many small businesses do not.

State and local governments have begun to come up with their own innovative solutions to make saving easier. To date, 11 cities and states have created new retirement savings programs featuring ideas like auto-enrollment individual retirement accounts (IRAs), multiple employer plans (MEPs) and marketplaces.

The private sector has stepped up to the plate by creating simpler, lower-cost retirement savings options that reach more workers. They have also begun to leverage technology to make the process of planning and saving more convenient for millennials who have become accustomed to such solutions to everyday challenges. The financial industry is also increasing available lifetime income solutions to help make sure that the retirement nest egg lasts for the rest of the retirees life.

Increased access to savings plans is essential, especially for gig economy workers and minorities who are far less likely to be able to use an employer-sponsored retirement program.

Fortunately, millennials still have the advantage of time to get themselves on track for a secure retirement and avoid retiring poorer than their parents. The key is to get started now. Every $1,000 that a worker sets aside at age 35 becomes $3,240 by retirement. Waiting five years and putting that same money into savings at age 40 reduces the return to just $2,670 by the time retirement comes around.

There will be plenty of opportunities to adjust a plan, but theres no way to turn back the clock and start saving in the past. When it comes to retirement savings, there are no do-overs.

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Are millennials destined to live longer and retire poorer than their parents? - MarketWatch

A study found millennials are dipping into their retirement savings to either buy their first home or to pay down personal debt.

When he achieved financial independence at the age of 30 in 2015, Grant Sabatier knew his story was extreme.

The now-34-year-old had saved more than $1 million in just five years - after starting with a balance of $2.26 in his bank account.

Im an outlier, Sabatier told FOX Business. I am the exception to the rule.

Sabatier is a follower of the F.I.R.E. Movement -- which stands for Financial Independence, Retire Early. However, he still works and makes money by writing financial advice for his blog, Millennial Money and through speaking engagements and sales of his book, Financial Freedom.

I think the traditional concept [of retirement] is really outdated and I think within the next 10 years we wont even talk about it the same way that we talk about it now, Sabatier said. All it means for me is, once I became financially independent at 30, I started paring off all those things in my life that I didnt enjoy doing and started focusing my life around the things that I really wanted to do.

I still work really hard, [but] its mission-driven work as opposed to making money work, he added.

Grant Sabatier (pictured) saved more than $1 million in just five years and became financially independent. (Cory Vanderploeg;Courtesy of Grant Sabatier)

Most importantly, Sabatier gets to do the things that make his life richer -- but not in the financial sense.

Ultimately, money only matters if it helps you live a life you love, Sabatier said. Are you designing your life in a way that your work and your money is supporting that? And are you enjoying your life? Thats the most important thing. Its not about the million dollars, or when can you traditionally retire.

After saving for five years, Sabatier started a personal finance blog called Millennial Money and wrote a book called Financial Freedom. (Houston Bass; Courtesy of Grant Sabatier)

However, this mindset around money wasnt how Sabatier viewed financial independence when he got started in 2010.

That year, he had moved back in with his parents after hed been fired from his job. He said he was really ashamedbecause his parents had invested so much in him and he felt like he had let them -- and himself -- down.

So he decided to set the extremely arbitrary goal of saving $1 million as quickly as he could, which he realized about two and a half years in, would be about enough to live on for the rest of his life.

Even though he still technically works, Sabatier said that for him, "retirement" just meant that he stopped doing the things he didn't enjoy. "I think this idea of work, the idea of retirement, all these things are so fluid now," he told FOX Business (Courtesy of Grant Sabatier)

At that point, he decided he wanted to save the $1 million within five years -- but that turned into the only thing he did for the next two and a half years.

I just stopped doing everything, he said. All I was doing was making money and saving money I was just singularly focused on that goal.

Even though Sabatier still makes money through his blog, his book and speaking engagements, he told FOX Business that he donates or invests most of it to other people and projects in order to "keep my taxable income as low as possible," he said. (Courtesy of Grant Sabatier)

However, that came at its own cost. During those few years, he said he almost broke up with his girlfriend, who is now his wife, he didnt take good care of his health - gaining50 pounds -and he lost several friendships along the way, too.

Even though he was excited about hitting his goal, he admitted he had made a lot more sacrifices than in hindsight I probably would have made. However, the experiencewas a "net positive" overall because now he can do whatever he wants.

"But certainly I should have just chilled out a bit," he said.

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I realized somewhat later on that it wasnt about the million dollars or about becoming financially independent. What I was really seeking was just more peace in my life and more space and time and the ability to take a deep breath, Sabatier explained. I also didnt realize that so much of that freedom that I was craving, I already had access to so much earlier on.

Most of the things that make me happiest in life are pretty inexpensive or even free, he added. And so, once I started designing my life around how to have more time to do those, I realized that I needed a lot less money than I ever thought I would.

"I think the personal finance world and the money world, they always ask how much money do you need, how much money do you spend, how much money do you make, how much money do you want? When the first question should be, what kind of life do you want (Courtesy of Grant Sabatier)

Now, Sabatiers goal is passing that message on to other people throughout the F.I.R.E. Movement, including alongside one of the founders, Vicki Robin, who co-wrote the book Your Money or Your Life.

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If somethings not making your life better or richer, you should discard it, Sabatier said. And pursuing F.I.R.E. can just become money addiction in another form. People are so religious about their spreadsheets and their savings rates that it just ends up becoming just like any form of money addiction.

A lot of the work that I do or try to do in the movement is to humanize it a little bit more, he added. Lets make sure its always life before money. Its always life before money. Thats all building on Vickis work.

Excerpt from:
Millennial millionaire who retired at 30 explains the sacrifices he made to get there - Fox Business