Signs It’s Time to Review Your Retirement Plan

January 31, 2024

Retirement planning can often stir up a whirlwind of emotions, involving tough choices and facing the reality of aging. Inevitably, many find themselves avoiding it altogether, opting to bury their heads in the sand. Yet, reviewing your retirement plans is crucial for navigating the uncertainties of the future and fine-tuning your financial approach. Annuities can play a significant role in retirement planning, providing a steady income stream during retirement.

Understanding Annuities

An annuity is a financial product designed to generate a steady income stream, typically during retirement. They come in various types, including fixed, variable, and indexed funds. Each type offers unique features, such as guaranteed returns in a fixed annuity, the potential for higher returns in variable funds, and indexed options tied to specific market indexes. You can even choose a nonqualified annuity to reduce your tax burden in your retirement years.

Signs It's Time to Review Your Retirement Plan

Reviewing your retirement plan regularly ensures that you are on track to meet your long-term goals and needs. There are some specific signs to watch for that should tell you it’s time to review your plans.

Changes in Personal Finances

Significant changes in income or expenses may necessitate a review of your retirement plan to ensure it aligns with the new financial landscape. In addition, marriage, divorce, or the birth of a child can impact financial goals. As a result, you may need to adjust your retirement plans.

Market Volatility

Volatile market conditions can affect the performance of your annuity, prompting a reassessment of investment strategies. You might need to consider other investment approaches for greater peace of mind. Adapting annuity strategies to mitigate the impact of market volatility and optimize returns.

Evolving Retirement Goals

Shifting retirement lifestyle goals may trigger modifications that help your returns better align with new objectives. This may include more aggressive investments for greater returns or more conservative efforts to protect the fund you built.

Legislative Changes

Changes in tax regulations can have implications for your annuities. You may need to make adjustments accordingly, which means evaluating your retirement plans. Not only that but sometimes legislative actions can affect retirement planning and change limitations, so you may need to account for that.

Assessing Annuity Performance

Periodically assess the returns generated by your annuity and compare them to your initial expectations and financial goals. Routine monitoring of performance allows you to make adjustments if your funds fail to meet your projections or don’t perform the way you anticipated.

It is important to pay close attention to the fees associated with any annuity. These costs impact the overall returns you get on the fund.

You should consider your risk tolerance occasionally as well. Your ability to take financial risks changes as you age or as your retirement picture changes. Your plan should reflect that.

Making Adjustments

Your beneficiary details can change over time, especially with changing dynamics in your family or differing needs as you age. Consider your beneficiary information and adjust any potential payout needs as your situation evolves.

Seek Professional Guidance

Collaborating with financial professionals at 1891 Financial Life will help you optimize your annuity strategies and navigate the complexities of retirement planning. Reviewing retirement plans, particularly annuities, helps you stay on track with evolving financial goals to ensure a fulfilling retirement. Contact us today.

About 1891 Financial Life

At 1891 Financial Life, we don’t just sell policies; we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of "The World's Best Life Insurance Companies."

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.