Forward Focus: Retirement from All Angles

Forward Focus: Retirement from All Angles

May 2014

Ideas on Bond Investing play

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The world has changed for retirement planning, and most people are not prepared for the myriad challenges they will face to reach their long-term savings goals, says Lawrence Hughes, Chief Executive Officer of BNY Mellon Wealth Management.

The world has changed for retirement planning, and most people are not prepared for the myriad challenges they will face to reach their long-term savings goals, says Lawrence Hughes, Chief Executive Officer of BNY Mellon Wealth Management.

Reduced return expectations and rising tax rates are impacting saving and income needs, while market volatility and geopolitical unrest have dampened investor sentiment, Larry says. Many investors have dramatically underestimated what they will need, or they have postponed saving altogether.

“There are so many headwinds to retirement saving today, whether it’s the volatility of the markets, higher tax rates, reduced return expectations or geopolitical unrest,” Larry says. “We see investors facing so many new challenges that people never faced decades ago as they thought about their futures.”

You need to think about retirement from all angles. You need to think about tax consequences. You need to think about it from the return on pension plans. You also need to have knowledge of the capital markets. It's not the old world where you could set it and forget it. Today you need to be a nimble investor.

Lawrence Hughes, Chief Executive Officer, BNY Mellon Wealth Management

The key for investors to succeed in this landscape will be to have access to the right investment expertise, including portfolio managers with deep knowledge of asset classes, capital markets and global trends. People will also need to carefully integrate their investment strategies with tax strategies and sound wealth and estate planning. By creating a holistic plan that connects investments with goals, investors can adapt to changing times and navigate new opportunities and risks.

“The old days of ‘set it, and forget it,’ are gone,” Larry says. “For investors to be successful, they need to be nimble. They need to continuously plan, thinking about today, tomorrow and years from now. In fact, I like to say that they need to have a plan to keep on planning—because, ultimately, the world is a very challenging place when it comes to retirement. ”