Financial Advisor Darcy Bergen discusses possible retirement surprises everyone should understand when planning for retirement.
Darcy Bergen is an esteemed financial advisor with experience in tactical money management, life insurance, social security planning, and income planning for retirement. He has helped countless people create effective retirement plans and continues to do so through his company, Bergen Financial. Recently, Darcy Bergen discussed the possible retirement surprises every person should understand when planning for retirement.
“One of the first things everyone should know when planning for retirement is that their retirement date may not come simply when they choose,” Darcy Bergen stated. “Sometimes, this day comes at a surprising time, and it’s essential to be prepared.”
Darcy Bergen explained that it’s important to plan for retirement even if you don’t plan on retiring very soon. He explained that the average age for retirement right now is 59. He added that not all of those individuals choose to retire at 59. Some of them retired due to health issues while others retired due to other factors, like job loss.* He explained that it’s essential to plan for retirement and understand that the retirement date could come sooner than expected.
“Retirees also often forget that the IRS doesn’t cut any slack,” Darcy Bergen said. “Some senior citizens owe federal taxes on Social Security benefits, and they’re completely unaware. This can come as a shockingly unpleasant surprise.”
Darcy Bergen explained that retirees in 13 states may have to pay state taxes on social security benefits. Darcy Bergen stated that his job as a financial advisor is to help potential retirees plan appropriately for retirement, so they don’t have disheartening surprises.
“Another surprise retirees often learn is that inflation has a larger impact on retirees than those who are working,” Darcy Bergen stated.
Darcy Bergen explained that inflation may affect the amount of money retirees need each year. He described how the average annual inflation rate in the United States is 3.22 percent.** That may not sound like a lot, but it means that at that rate, prices roughly doubled every 20 years throughout the past 100. Darcy Bergen stated that preparing for such inflation is an essential part of preparing for retirement.
“These surprises aren’t meant to scare anyone away from retiring,” Darcy Bergen stated. “They’re simply to inform potential retirees, so they’re properly prepared. Speaking to a financial professional well-versed in retirement planning can help ease your worries and prepare you for potential financial surprises.”