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Life Insurance

10 Things You Need to Know About Retirement

By Life Insurance, Retirement Planning

April is Financial Literacy Month, which means it’s a great time to revisit the basics and take a closer look at your long-term financial plan.

The earlier you build a strong foundation, the better equipped you are to make informed decisions, protect what you earn, and grow your savings over time. Whether retirement is close by or still a long way off, here are 10 important things to know about retirement.

  1. Retirement is a process, not a single date

A happy and fulfilling retirement means different things to different people. Likewise, the journey there is just as unique. Many people transition gradually, working part-time or adjusting their timeline, whether due to financial necessity or lifestyle choice. The Bureau of Labor Statistics notes that more Americans are including work as part of their retirement plans. If you claim Social Security before full retirement age, benefits may be reduced if your earnings are above certain limits. Understanding how claiming age, income, and Social Security rules interact can help you plan smarter and avoid surprises.

  1. How much you’ll need to for retirement

The amount you need depends on your lifestyle, health, expected retirement age, and income sources. Focus on what you actually expect to spend, not just your current income. Some costs, like commuting, may drop, while others, like healthcare, may rise. Consider how long your retirement may last, the effects of inflation over time, and any other income sources such as Social Security, pensions, or investments, which can help reduce how much you need to save but should be evaluated within your overall plan. A financial professional can help you make these calculations and adjustments.

  1. Your retirement could be very long

Many dream of a long retirement, but few realize just how long it could last. Since 1980, the number of Americans aged 90 and older has nearly tripled. Women tend to outlive men, and a 65-year-old today can expect almost two more decades of life on average. If you retire at 62 and live to 95, your retirement could last 33 years, far longer than many people’s working careers. That makes it clear you cannot fund three decades of retirement with only 15 years of savings.

  1. Retirement is a bit different for women than for men

Retirement can be more challenging for women for several reasons. Women generally live longer than men, which can mean higher healthcare and long-term care costs. Additionally, women are more likely to take career breaks (caregiving for children or elderly relatives) and earn less over their lifetimes, leading to smaller Social Security benefits and retirement savings. As a result, women often face larger income drops and greater retirement security gaps than men.

  1. Healthcare costs can add up

Planning for medical expenses, including Medicare coverage, is essential. According to Fidelity’s 2025 Retirement Health Care Cost Estimate, a 65-year-old couple retiring today may need about $315,000 to cover healthcare costs in retirement, not including long-term care. A single retiree might need roughly $150,000. Being covered by Medicare can make a big difference, so it’s important to understand your options and make informed decisions to avoid costly mistakes.

Staying healthy may not be at the top of your retirement to-do list, but it should be. Better health can reduce healthcare costs and help your savings last longer. This means preparing healthier meals, staying active, and routinely seeing your healthcare providers for checkups.

  1. Taxes don’t go away in retirement

Many retirees assume their income will be tax-free, but that’s not the case. Withdrawals from traditional accounts like 401(k)s and IRAs, as well as portions of Social Security, may be taxed, while Roth accounts can offer tax-free withdrawals if certain conditions are met. Additionally, you’ll still face sales taxes on things you buy and property taxes on property you own. If you don’t plan for taxes, you could end up withdrawing more than expected, which can reduce how long your nest egg lasts.

  1. Senior discounts are one of the major retirement perks

Senior discounts are widely available across retail, groceries, entertainment, dining, travel, and healthcare. While Medicare eligibility begins at 65, many discounts start as early as age 55, with others beginning at 60. Some offers may require an AARP membership or proof of eligibility, such as SSI. Remember that there is no legal requirement to offer discounts to seniors, so it pays to ask before purchasing.

  1. You still need an emergency fund

Few of us head into retirement expecting the worst, but sometimes it happens. Financial emergencies happen in all phases of our lives, and it’s vital to be able to take care of them without raiding retirement coffers or other important accounts. Your car might suddenly need a $2,000 repair, for example, or your roof might develop a leak.

  1. Understand your retirement accounts and RMDs

Different retirement accounts are taxed in different ways, and understanding these rules can have a significant impact on your savings. Your choice between traditional and Roth accounts should consider your current tax bracket, expected future income, and overall financial goals. Additionally, health savings accounts (HSAs) can offer unique tax benefits when used for qualified medical expenses in retirement.

At age 73, you’re required to take annual RMDs from all traditional (non-Roth) retirement accounts, including IRAs, 401(k)s, and similar plans. RMDs aren’t automatic, so you must proactively take them, generally by December 31, except for your first RMD, which can be delayed until April 1 of the year after you turn 73. Missing the deadline can result in income taxes plus a 25% penalty.

  1. Your retirement plan should evolve over time

Retirement planning isn’t static. Life circumstances, tax laws, market conditions, and personal goals change over time, so your plan needs to adapt accordingly. Working with a professional provides informed guidance to help you adjust strategies, optimize investments, manage risks, and seize opportunities you might otherwise miss.

Contact us today to get the guidance you need for a secure retirement.

(833) 401-ROLL
2026-04-24
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Understanding Life Insurance: 7 Things You Should Know

By Life Insurance

Life insurance is an important part of a comprehensive financial plan. Here are 7 things you should know about it.

At its simplest, you probably already know that life insurance provides funds in the case of unexpected loss of life. But there may be other aspects of life insurance that are less clear to you. If there are things about life insurance that you don’t understand, you are not alone! Not to worry. We’re here to clear up some of the basics about life insurance.

1) Policy Beneficiaries Receive Payouts

The beneficiary or beneficiaries named on a life insurance policy are the ones who receive the payout from the insurance company that issues a life insurance policy. Often a spouse, child, or other loved ones are named as beneficiaries, but in some cases, the beneficiary of a life insurance policy might be a trust.

NOTE: It is very important that a policy owner keeps policy beneficiaries up to date as situations, ages, and relationships change through time. An annual review is recommended.

2) A Life Policy Is “Written On” a Named Insured or Insured Persons, Not Always the Policy Owner

A “named insured” on a life policy is the one whose life is being insured. Generally, an insured person will purchase a policy on themselves, naming themselves as the insured, so that when they die, the death benefit goes to their chosen beneficiaries.

But an owner is not always the same as the insured. As an owner, you control the policy, and you can purchase a life insurance policy on someone else, as long as you would suffer from their death as a family member, business partner, or some other close relationship.

For instance, sometimes spouses will purchase policies naming each of them as joint insureds. These can be set up as “first to die,” where the surviving spouse or other named beneficiary receives the death benefit as soon as the first spouse dies, or as “second to die” (sometimes called “survivorship”) policies that only kick in to pay beneficiaries after both insureds have passed away.

In some cases, you might want to purchase a policy but make someone else the owner, for example, as a strategy inside a trust.

Or sometimes a parent or grandparent will purchase a policy naming a child or toddler as the insured. Naming the child when they are young and healthy (while the cost of insurance is low) can be done as a strategy to help save for the child’s future college expenses, and to ensure that the child has life insurance in place should they develop a health condition later.

3) Life Insurance Usually Requires Medical Underwriting

Life insurance usually requires medical underwriting, which means that once you apply for a life insurance policy, the insured person’s lifestyle, height and weight, medical history, and general level of health will be assessed (and approved) before your policy will be issued. Sometimes a physical exam will be required, and sometimes life insurance coverage will be denied, for example, if the insured person has a terminal condition. But even if you are in poor health, you may be able to obtain a life insurance policy at a higher cost.

And you may be able to purchase life insurance even if you are age 70 or older. In fact, in 2025, men age 70+ sent in 23.5% more applications for individual life policies in the first half of the year than in the first half of 2024, while applications for women age 70+ increased 15.4%.

4) Premiums Are What You Pay for Insurance

The word “premium” in the context of a life insurance policy is how much you will pay monthly, annually, or once for single premium life insurance policies. Premiums are determined on an individual policy basis based on many factors, including age, health, and credit.

5) Most Life Insurance Payouts—aka Death Benefits—Are Tax-Free and Probate Free

The money paid by an insurance company to a beneficiary upon the death of the insured person is called a “death benefit.” In most cases, a death benefit is tax-free and bypasses the probate process unless it’s paid to a trust, in which case different IRS rules may apply.

This can be a tremendous help to the spouse and family members during their time of grief and beyond as they look to their futures. It’s often recommended that a life insurance policy’s death benefit be in an amount that can cover monthly living expenses, mortgage payments, future college expenses, etc., protecting families from immediate and future economic devastation.

6) Life Insurance Can Be Used for Estate Planning Trusts and Business Succession Plans

It’s important when setting up complex estate plans, trusts, and business succession plans which may include life insurance that you consult with a team comprised of your financial advisor, estate attorney and CPA/tax professionals. IRS rules and tax laws are always in flux.

7) There Are Many Types of Life Insurance

In addition to term life policies, there are many permanent life insurance policies, including whole life, universal life and variable life. While a death benefit is always part of a life insurance policy, different types of life insurance policies are structured differently, and may contain additional features as part of the structure of the policy itself, or available as a “rider” to the policy for an additional premium amount. For instance, some policies even offer coverage for long-term care should you develop the need for it but provide a death benefit for your heirs if you don’t.

Life insurance is complex, and a life insurance policy is a contract between you and an insurance company. It is recommended that you work with your team of advisors to examine each contract clause thoroughly before purchasing a life insurance policy.

If you would like to discuss life insurance, please contact us!

(833) 401-ROLL

This document is for general information purposes only and is not to be relied upon for financial advice. In every case, you should seek the advice of qualified tax, financial and legal professionals to ensure that a life policy is advisable based on your unique circumstances.

Life insurance often requires medical underwriting. Guarantees are provided by insurance companies and are reliant upon the financial strength and claims-paying ability of each individual insurance carrier issuing a life insurance contract.

Sources:

2026-01-14
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