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Is now a safe time to retire?

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    George Castineras answers common retirement questions

  • Duration 7:20
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Donna not what's doing your portfolio what he'd do if you're in retirement.

Or close to it.

George -- an -- is -- -- -- -- senior vice president total retirement solutions out in Connecticut George thanks for being with us today.

Tracy thank you for having me having come close to retirement I'm very nervous right it -- a bunch of bubbles that first.

You know I'm picking my mom my mom's very close.

Tech bubble -- lost money housing bubble burst we lost money.

I did -- in the market and might.

And most people you bring -- a very good point what happens with most people that are retirement plans as soon as they see the market collapsed.

War and quite frankly just major -- weather's 300 points 500 points it doesn't really matter.

People automatically react and take their assets out of equity put into fixed income and the worst of all people stop investing altogether.

May -- -- a little bit of a study on this so it and you found some things about how prepared we are for retirement I'm gonna guests were not prepared.

Yeah actually we're not prepared I mean this is there's some good news and obviously there's some challenging -- in the challenging uses.

If you look at the last twenty years and there is a national retirement risk index that stunned by Boston College that we we.

Sponsor Prudential.

The recent study demonstrates that over the last twenty years the amount of preparedness in the United States for Americans to have a the same standard of living that they have pre retirement in retirement.

Has increased from 30% have not been ready to 50%.

That's already big jump -- we're not expecting it to drop.

-- 50% are not ready is that because they lost money in the market over the years -- to because they stop saving.

It's it's actually commented you know there's the simple answer is part of it's -- lost money part of it is they stop saving.

And there's quite a few Americans that don't save at all because the fear of making the wrong decision Tracy far outweighs making any decision of all when it comes to financial planning.

I agree actually eat it creates inner -- and you know what it's very confusing to be a long term or short term investor these days because.

We were just talking earlier there's so many variables assigned from.

Yeah whatever you want to call is a recovery here in the United States.

There's China and there's Europe and pack she's win North Korea try to bomb -- -- that and who knows last night so.

I'd rather keep my money and I -- at.

If I'm close to 65.

-- -- haven't I'm not convinced that's the best strategy guide that's out there but I you know I analyzed -- -- of people wanted to do that.

There are components that can actually solve some of this for for.

Americans across the country Israelis retirement.

There are new products that are being introduced by the industry one of -- would be guaranteed income as an example and guaranteed income a lot of times.

Is misunderstood hesitant -- traditional annuity if you will yes these solutions have become so sophisticated that they do multiple things number one they give you complete access and flexibility the assets and ample transparency.

Number two a protects you from everything that we -- in 2008.

Where people had a massive collapse and these portfolios needed -- impact.

And unfortunately if you weren't and have in this -- -- a solution -- lost thirty to 40% of your portfolio.

And they guaranteed lifetime income an out our list of what happens the portfolio so we've seen a dramatic shift on how people behave.

By having these types a product.

A lot of people mean annuities EA say -- -- annuity allowed people.

Want to run really really fast and far.

Let's not -- security benefits that right now should anybody be -- MM I mean certainly not the way I see is I'm paying for my mom.

Yet you know -- that's that's a fair statement you know if you talk about the people are getting greater retire right now there is one thing as a relates to Social Security that they can do.

If there's a way for them to delay.

Accessing their retirement income from Social Security vs 62 wait -- 66.

It makes a dramatic impact on the amount of income that -- have if they have a survivor benefit even makes an improvement on that.

Well we see most Americans do they go to 62 they start collecting that check -- -- give more money away than they need to.

Well we educate folks I'm in some cases is if you have enough money to get you through -- sixty to 66.

Take the money -- -- 66 of the Social Security Office you're likely to be a much better shape depending on how he's safe return highest.

Why do you say that you give -- way -- used -- -- and taxes and things like that at 6010.

-- -- -- on the table.

You leave -- basically leaving money on the table if you take money out of 62 you get acts if you take money out at 66 it increases significantly because you're delaying your retirement age.

So that's the benefit in addition -- preferential tax treatment.

It's a good -- those are basically you're saying.

Try to live off your own for those four years and push it off as far as you can and that will.

-- yes help here a little bit further in retirement aren't -- you know a lot of retirees.

Take on part time jobs and stuff like Africa.

-- it's you know retirement in the United States I would say is.

Changing.

You say the word retirement I think the psychology automatically gets people to think.

Well into the future and that also creates some of the inertia.

But because a lack retirement preparedness there are folks that are working more.

The retirement I would say is being redefined I want choice at some point my career to do what I want to do.

Anchor and in some cases people wanna work longer they want to take on different jobs -- -- -- pick some some other obvious.

But the reality is in the state of the environment that we're in today more people are deciding to work longer and that's gonna have a challenge before -- Workforce management for a lot of employers -- that continues.

We're already seeing you know that retiree generation take on the jobs that our kids at a cons would typically have because.

Many employees actually would prefer elder person working for them -- -- more dependable.

Let me ask you something before I let you go that I go online -- -- -- of those retirement calculators that helps me the -- and even retirement.

And there's so many zeroes have ended and number I wanna -- up.

So as -- is -- I do nothing because well it's really really -- number so what do you say to people in that instance because.

You know when -- says he by the -- any 56 million -- to retire it just seems like there's no way there's no way.

You know -- you just brought up one of the most critical points about retirement planning -- and asked to do with the behavior.

People focus on the wrong number and am asking everyone to think about it differently.

It's not about the five to six million dollars that's actually creating I'd adverse effect because it becomes too frightening great even contemplate that -- -- with these retirement income calculation be doing is taking.

Look at your world from -- paycheck perspective.

How much money do you make now how much are you saving.

How much do you think you're gonna need in retirement and what's that gap and the gap you know what you're going to their retirement income calculator.

Is let's say 500 dollars that seems a lot more achievable and at that point they can change your contribution generation let's say 2% to 3%.

And that 500 dollar -- to 200 dollars.

We seem dramatic shifts by changing the way people look at retirement from that big massive number -- -- looking at it as if there was a paycheck that makes a big difference.

Well that should be -- calculator available then let's given the other ones that have -- how many -- -- gonna come and roll over a cliff.

Hey did you so much your -- with us this is great stuff and it -- out people need to start thinking about it George -- and -- -- Senior vice president total retirement solutions -- in Hartford Connecticut thank you sir.

Thank you Tracy.

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