Daily Money - What's the Best Country for Retirement?

September 28, 2021

Want a great retirement? Move to Iceland! The tiny island nation got the top spot in a recent global retirement survey from Natixis Investment Managers. Meanwhile, the U.S. didn’t crack the top 10, scoring 17th out of 44 countries on factors that include health, material well being, government debt and quality of life. The study may have overlooked geography, though, for as lovely as I hear Iceland is, its long dark winters would take some getting used to. Of course, you can enjoy a fulfilling retirement anywhere — some places just make it easier than others. To the extent that America’s safety net is fraying, you’ll need to save that much more, so please sock away as much as you can.

Best wishes,

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Timely Retirement News, Insights and Advice

The U.S. is far down the list.

Median national rents grew a whopping 11.5% between August 2020 and August 2021. 

It’ll probably take you by surprise.

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Retire With Money Community News

What are you up to these days?

We continue to be active serving on nonprofit boards and as parish volunteers. We love to travel (before COVID-19) and made trips to the Hawaiian Islands, Yellowstone National Park, Panama Canal, British Columbia, and Sanibel Island. We enjoy spending time with our adult children making wonderful memories. Our twin granddaughters, Anna and Bella (7) and their sister, Zoë (11) keep us busy attending their activities throughout the school year and summer months.

Nice! What’s your advice for preparing for retirement?
 
The key to a successful retirement begins before your retirement date arrives. Take the time to think through and visualize your retirement life. Set your retirement goals. We used a very structured process and set goals in the areas of financial planning, lifestyle and home, travel, volunteering, part-time employment, health care, physical activity, hobbies, and outside activities. 
 
Here are a few examples: lifestyle and home. We decided that we were going to remain in our home and invest money in home improvement projects. Regarding part-time employment, together we worked as summer seasonal Gatekeepers at one of our county parks; and regarding health care, we took advantage of a retiree health plan through our previous employer where we are given a monthly stipend to assist with health plan premiums, as well as a Medicare supplement plan until we both reach age 70.  
 
Smart! What’s your approach to retirement income?
 
We are partners with the Raymond James Heartland Wealth Management Team and have adopted a “bucket” model that works for us. We review our goals and meet semi-annually with our team.
 

Bucket #1…. cash and cash alternatives (one year of income)
Bucket #2…. low risk, short-duration investments (five years of income)
Bucket #3…. good quality, diversified investments (move 5% annually to buckets 1 and 2)
Bucket #4…. small number of equities with strong history of modest returns (move gains each year to buckets 1 and 2)

 
Our annual distribution from our portfolio should be between 4%-6% to maintain a balanced and comfortable financial position. 

Retirement News From Around The Web

Elder Friendly Technology is a Growing Market
But is it too patronizing? VOX

Why a Transformation of Caregiving Could Be Biden’s B.F.D.
A proposal — part of the ambitious domestic legislation going through Congress —would fund programs that allow disabled and elderly Americans to live on their own. HUFFINGTON POST

A Prolonged Stock Market Pullback Can Pose a Big Risk Early in Retirement
Here’s what to know about “sequence of return risk.” CNBC

How to Avoid the Scams Popping Up Everywhere
Tell scammers you want to do more research, and hang up if you get a call. NEXT AVENUE

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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