Michigan Baby Boomers are fast approaching retirement age, and a new resource from the University of Michigan aims to assist them in making informed choices regarding when and where to retire. Called Retirement Planning & Thrive, this tool helps individuals compare various strategies for optimizing post-work lives while offering guidance on both financial and non-financial factors that influence contentment in retirement. Available online and providing details about local communities offering good environments in which to retire.
Planning one’s financial future after leaving work can be challenging, with many people uncertain how much money they’ll need for retirement or what savings programs to invest in. A financial planner can provide answers and more. When retired, living expenses tend to depend on savings accounts, investment accounts, Social Security benefits and any other sources of income available to a person.
Many states mandate employers provide employees with retirement plans, such as 401(k) retirement accounts, defined benefit pensions and 457 deferred compensation plans. Michigan’s state government uses Voya’s pension system administration services for active and retired state employees who participate in these plans; additionally they also offer services like investment counseling and round-the-clock customer service support.
Estimates suggest that approximately one out of seven US households lack sufficient savings for retirement, creating what’s known as the Retirement Savings Crisis and being an enormous strain on the economy. Michigan alone projects vulnerable older households will experience an estimated $11.2 billion shortfall by 2040 and, without action being taken to remedy it, this issue could mean higher taxes and decreased living standards for residents.
Michigan lawmakers are exploring solutions to make saving easier, including legislation proposed by State Representative Mike McFall that would automatically enroll workers into savings plans if their employer doesn’t provide one – similar to auto-enrollment features found in 401(k) plans – so that each worker could choose how much of their paycheck goes toward savings accounts.
Ann Arbor, home to the University of Michigan and thousands of college students, is an increasingly popular retirement destination due to its outdoor activities, art scene, and bustling city environment. Frankenmuth offers its residents a relaxing lifestyle not far from stunning beaches and peaceful walking trails, earning it the nickname Little Bavaria. There are regular festivals held there, as well as Bronner’s, an iconic year-round Christmas store. If you’re considering retiring in Michigan, be sure to inform your financial advisor of its tax policies. Michigan offers several deductions that may reduce your overall tax burden; these include exempting Social Security benefits from taxation as well as providing multiple forms of deductions specific to retirees.