In light of the recent market downturn, where multiple U.S. stock market indices dropped 20% or more from February 19th to April 7th, a client preparing for retirement in the next few months said last week, “It looks like I picked a bad time to retire.” For those of you who know me and my love of movies, music, and pop culture trivia and references, the first thing that popped into my head was the actor Lloyd Bridges, who plays Steve McCroskey in the movie Airplane!
For those of you who need a refresher on the plot, the entire flight crew and several passengers fall ill after the in-flight meal is served. Passenger Dr. Rumack discovers that the fish served during meal service has caused food poisoning. With the flight crew incapacitated, Elaine contacts the Chicago control tower for help and is instructed by tower supervisor Steve McCroskey to activate the plane's autopilot, which will get them to Chicago. However, as bad weather sets in and the situation looks more and more grim, Steve McCroskey turns to various vices such as cigarettes, alcohol, and less legal means to deal with the stress of the situation.
“Looks like I picked the wrong week to quit drinking.”
“Looks like I picked the wrong week to quit smoking.”
“Looks like I picked the wrong week to quit amphetamines.”
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Luckily for the client in question, we have been preparing for retirement for many years. Their portfolio liquidity, resiliency, and income resources still have them on track to make a successful transition from work life to retirement life in the next few months. While this particular client felt much better after our conversation, many people moving toward retirement in the near future do not have the same level of confidence.
As I have shared with you previously, I will be turning 60 in October of this year. This puts me on the front end of Generation X, those born between 1965 and 1980. This is the first group of workers who saw their retirement plans move from being funded by traditional pension plans to retirement savings plans such as 401K's and IRAs. According to a recent survey of 10,000 people published by the Transamerica Center for Retirement Studies, nearly 70% of those surveyed don't feel they will have enough savings by the time they retire.
When these retirement savings vehicles were first introduced, the number of people saving money for retirement through them was much lower than it is today. Back in the 1980s and 90s, features such as auto enrollment for new employees or target date asset allocation funds did not exist to help workers choose the right investment strategies and asset allocation for their age and risk profile. More workers are participating in these plans today, but many feel they will never accumulate the funds necessary to live a comfortable lifestyle during their retirement years. They have also lived through multiple market downturns and financial crises over the last 25 years, such as the dot.com bubble, 9/11, the 07-‘08 Great Financial Crisis, the COVID-19 pandemic, and more recently, skyrocketing inflation and interest rates, and the recent trade/tariff volatility and market downturn.
Catherine Collinson, CEO and president of Transamerica Institute and its Center for Retirement Studies, stated, “Societally, we're now starting to realize how difficult it can be for people to save for retirement because they're juggling competing financial priorities.” These can include building an emergency fund, saving for their children's college education, rising home ownership and automobile costs, and caring for aging parents. “People are feeling the squeeze and something's got to give, hopefully it will not be their future retirement,” Collinson said.
Health care costs over a retirement life expectancy can be significant, especially if long-term care is needed at home or in a facility. We are also acutely aware that advances in medical technology, biomedical engineering, stem cell treatments, genomic studies, and AI-assisted drug development could lengthen life expectancy from the mid-80s to age 100 or beyond over the next decade.
I am happy to report that, like my client in the story above, you do not have to experience the stress or anxiety that many of the people in Transamerica's retirement survey are experiencing. You also do not have to turn to artificial vices, legal or otherwise, like tower supervisor Steve McCroskey in the movie Airplane! Instead, you can turn to the CFPs of Impel Wealth Management and the financial planning process to help you as you plan for a successful retirement. You can learn more about our team and services through the website links below.
https://www.impelwealth.com/
https://www.impelwealth.com/service
The team at Impel Wealth Management offers a comprehensive approach to investment consulting, advanced planning, and relationship management to help you make informed decisions about your future. We help our clients address how to earn and preserve assets, manage tax concerns, transfer wealth, and bless others through charitable giving—now and into the future. Our goal is to help you avoid missteps and walk confidently toward your vision. If you, or someone you know or love, has questions or concerns about your future retirement, we are here for you as we continue “Moving Life Forward.”
© 2025 Jesse Hurst
Senior Wealth Manager
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