Doctors use Artificial Intelligence software to plan for the future

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About 30% of U.S. doctors are approaching retirement age, but only 12% are choosing to retire. Why? In a financial environment struggling with inflation, advance preparation for retirement is necessary for all physicians seeking more comfortable golden years.

Physician income has not caught up with inflation. Current inflation levels go against the concept of the 4% rule that helps people decide how much they need to save for retirement. However, technology-enabled retirement planning tools can assist physicians and other high-income earners to make better plans for a financially independent retired life.

A survey conducted by Lincoln Financial Group found that about 60% of retirees would plan their retirement differently if they could. Most of these older Americans feel they should have started saving earlier. Many also needed to pay more attention to investment options that provide a steady income stream after retirement. 85% of respondents felt they should have planned better for unexpected factors such as volatility and inflation.

Delaying Retirement

Another survey by Lincoln Financial Group reveals that a large group of retirees in America are likely to rely increasingly on Social Security benefits for their survival. According to this survey, approximately 20% of the U.S. population will be 65 or older by 2030. Unfortunately, 50% of households in America do not have sufficient earnings to maintain their standard of living after retirement.

Over the generations, employer pensions, personal savings, and Social Security have been most Americans’ primary means of retirement planning. However, pensions have virtually disappeared from the private sector, and personal savings rates have decreased significantly in recent years. As a result, millions of financially unprotected families rely too much on Social Security benefits.

As a result of these factors, many older adults, including physicians, plan to keep working much longer. According to a survey by AARP, 57% of the 50-plus working population plans to work beyond retirement age for financial reasons. The Bureau of Labor Statistics (BLS) projects that by 2030, the labor force participation rate for people aged 75 and older will rise 11.7%, from 8.9% in 2020.

Retirement is synonymous with ceasing to work. Unfortunately, many physicians risk losing out on this leisure time because of inadequate retirement planning. Even if they are prepared, they may want more time to feel financially ready, especially if the economy isn’t doing well.

Using Technology To Plan for Retirement

Retirement planning can be a daunting process involving financial and logistical considerations. The good news is that technology has made planning for a worry-free retirement much easier. Many physicians now use these advanced retirement calculator tools.

In addition to advanced technology, personal finance websites also provide valuable information and suggestions to assist retirement planning. For example, PhysicianonFire.com is a website and community dedicated to helping physicians make better financial decisions and lead financially independent retired lives. Founded by a physician, it offers practical assistance, including Social Security calculators, tax planning calculators, and more.

Advantages of Technology for Retirement Prep

There are many reasons an increasing number of physicians rely on technology to plan better for their retirement.

• Assessment of Retirement Needs: Digital tools make it easier to calculate an individual’s retirement needs. These tools account for many factors including expenses, investments, savings, etc. They estimate how much money a person needs to retirecomfortably, which is a primary requirement for a stress-free, secure retirement.
• Working with Experts: Technology allows individuals to work with experts who can help them make informed financial decisions to benefit their retirement fund. These experts provide tailor-made solutions for individual needs.
• Apps and Software: Planning software and apps streamline the entire process. These tools create personalized retirement plans, track progress, and make necessary adjustments.
• Robo-Advisors: Charge much lower fees than traditional advisors. They recommend personalized investment portfolios using algorithms. Plus, they’re available 24/7.
• Tracking Retirement Funds: Online portals make it easy to view investment portfolios. With just a few clicks, users can make changes to asset allocations.

All these tools help manage finances and create a sense of control over retirement planning.

Embracing technology-enabled retirement planning is the way forward for physicians looking to secure their financial well-being in an inflationary environment. Websites like Projection Lab can be helpful as the world gets more complicated and investors try to manage their assets. Using these tools can help people better navigate the complexities of retirement planning, enjoy a worry-free retirement, and focus on the passions and pursuits that really matter to them.

This article was produced by Media Decision and syndicated by Wealth of Geeks.

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