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Wealth of Geeks
About 30% of U.S. doctors are approaching retirement age, but only 12% are choosing to retire. Why? In a financial environment struggling with inflation, advance preparation for retirement is necessary for all physicians seeking more comfortable golden years.
Physician income has not caught up with inflation. Current inflation levels go against the concept of the 4% rule that helps people decide how much they need to save for retirement. However, technology-enabled retirement planning tools can assist physicians and other high-income earners to make better plans for a financially independent retired life.
A survey conducted by Lincoln Financial Group found that about 60% of retirees would plan their retirement differently if they could. Most of these older Americans feel they should have started saving earlier. Many also needed to pay more attention to investment options that provide a steady income stream after retirement. 85% of respondents felt they should have planned better for unexpected factors such as volatility and inflation.
Another survey by Lincoln Financial Group reveals that a large group of retirees in America are likely to rely increasingly on Social Security benefits for their survival. According to this survey, approximately 20% of the U.S. population will be 65 or older by 2030. Unfortunately, 50% of households in America do not have sufficient earnings to maintain their standard of living after retirement.
Over the generations, employer pensions, personal savings, and Social Security have been most Americans' primary means of retirement planning. However, pensions have virtually disappeared from the private sector, and personal savings rates have decreased significantly in recent years. As a result, millions of financially unprotected families rely too much on Social Security benefits.
As a result of these factors, many older adults, including physicians, plan to keep working much longer. According to a survey by AARP, 57% of the 50-plus working population plans to work beyond retirement age for financial reasons.