Retirement Headlines Are Grim, But Here’s the Bigger Picture | Mia Samson

Retirement Headlines Are Grim, But Here’s the Bigger Picture

By: Mia Samson

When you search for news articles and updates about retirement, the headlines are... pretty gloomy. Titles like Even Rich Retirees Fear Outliving Their Money, Here's What Retirement on a Pension Looks Like in America, The 401(k) Has Reached a Tipping Point in Its Takeover of American Retirement all paint a pretty bleak picture of what's ahead. While some of these concerns are real, I’m here to remind you that retirement doesn't have to be all doom and gloom.

As a financial advisor, I know first hand that you can make your retirement the best years of your life. Personally, I have several clients who are thriving years into their retirement. My dad is one of them, he's also a client. Sure, his retirement has come with a longer honey-do list (I'm convinced my mom could outdo any Pinterest board with her home project ideas), but overall, he's enjoying life because we spent decades planning for this transition.

That being said, there are legitimate concerns about retirement that shouldn't be ignored. Success only comes from years of dedication and hard work. One major issue is the retirement consumption puzzle, many retirees are so worried about outliving their money that they underspend, even when they don't need to. Studies show that those who spend more report greater satisfaction, yet many retirees withdraw only about 2.1% of their savings annually, far below the 5% rule that we use as a safe cushion at Gerber Kawasaki.

On the flip side, retirees with pensions tend to be much more confident in spending because they provide predictable income, removing the stress of investment decisions and market volatility. However, pensions are increasingly rare and only about 15% of private-sector workers still have access to one. This shift has put more responsibility on individuals to manage their own retirement through 401(k)s.

As promised, here is some good news: 401(k) participation has reached an all-time high. For the first time ever, half of private-sector workers are contributing to a 401(k), and access to these plans has risen from 60% to 70% in just a decade. What's driving this?

1. ? Auto-Enrollment & Employer Matches – More companies are automatically enrolling employees into 401(k) plans, and employer contributions encourage participation.

2. ? Policy Changes & Incentives – New laws are expanding access, especially among small businesses, which historically lagged in offering retirement benefits previously.

IMPORTANT: If you are a business owner and you don't have a retirement plan set up for your employees. Reach out to me. You are going to want to adjust that to avoid penalties.

3. ? Increased Financial Awareness – More people are recognizing the tax advantages and long-term benefits of saving early and often. (I'd say thank you to our eduction system, but truthfully, thank you social media.)

So while the media loves to focus on fear factors, the reality is more balanced. More people are saving, participating, and planning for their futures. And while my dad's biggest retirement concern is keeping up with my mom's home projects, that's a much better problem to have than worrying about running out of money.

Retirement isn't the end of the road, it's just another chapter. At Gerber Kawasaki, we specialize in helping you reevaluate your financial plan, fine-tune your retirement strategy, and even find ways to increase your retirement savings. Whether it's optimizing your 401(k), considering investment options, or planning for future expenses, our team is here to guide you every step of the way.

?If you're feeling uncertain about your retirement outlook, reach out, let's create a plan that ensures your golden years are just as fulfilling as you envision. After all, it takes decades of saving and preparation.?

Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: https://www.adviserinfo.sec.gov .?

?Mia Samson is a Financial Advisor of Santa Monica, California-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$3.36B billion in assets under management as of 12/31/24.? The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results."?