When it comes to retirement planning, it's not enough to simply "set it and forget it" anymore. To achieve your long-term goals, you'll need a flexible plan that incorporates your needs and is ready for the potential challenges that lay ahead. We call this "objective-driven investing."

As life gets more costly and complicated, most people are saving less, or putting off saving altogether. Here are some of the most significant challenges facing retirement savers today:


Cultural and Economic Changes Have Transformed Retirement Planning

When people stayed in one place or in one job for most of their careers and could rely on a pension plan for income, retirement planning was relatively simple. Today, that level of stability is hard to come by.


Saving Has Become Harder Due to Tax Increases

In the U.S., legislation passed in 2013 that raised long-term capital gains taxes on higher-income taxpayers by 59%, which affected many sources of investment income, including interest, dividends and capital gains.


Low Interest Rates Have Negatively Impacted Returns on Fixed Income Investments

Rates have been at historic lows for the last few years and uncertainty over U.S. Federal Reserve policy has had a dramatic impact on the total returns for these investments.


Global Unrest Continues to Weigh on the Markets and Investors' psyches

Turmoil in the Middle East and elsewhere has resulted in increased volatility, making it difficult to stay focused on retirement planning and long-term goals.


What the AARP estimates a healthy 50-year old couple will pay in health care costs if they retire at 65.


Life expectancy for a healthy person in the developed world today.


How much capital gains tax rates for higher income taxpayers increased in 2013.

“Objective-driven investing requires aligning realistic retirement income and expense projections, analysis of assets and liabilities and a clear idea of your goals.”
The key to addressing these challenges is remaining open to new ideas
Know what retirement is really going to cost you

People may need as much, or even more, money in retirement than they did when they were working. Make sure you continually refresh your expectations.

Understand that debt can be an asset

In a low-interest or rising-tax environment, it may be wiser to borrow funds to pay expenses rather than to sell assets to pay them immediately.

Align your investment strategy with your goals

Any good plan begins with a thorough understanding of your needs and wants, so you can evaluate potential trade-offs appropriately.

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    This material is provided for illustrative/educational purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Effort has been made to ensure that the material presented herein is accurate at the time of publication. However, this material is not intended to be a full and exhaustive explanation of the law in any area or of all of the tax, investment or financial options available. The information discussed herein may not be applicable to or appropriate for every investor and should be used only after consultation with professionals who have reviewed your specific situation.

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