Americans are living longer, healthier, and more fulfilling lives. With advancements in medicine and a focus on staying active, many who retire in Texas are spending decades enjoying travel, hobbies, and time with loved ones.
Living a long retirement is a wonderful gift and blessing, but it’s also a reminder of the importance of wise financial planning to make the most of those golden years.
At PAX Financial Group, we are fiduciaries who honor Judeo-Christian values and help high-net-worth individuals and families prepare for every stage of life. Our team has over 100 years of combined experience, and we’re deeply committed to helping you build a retirement strategy that supports your long-term vision of financial success.
In this article, we’ll discuss key areas of planning, including longevity risks, investment strategies, and faith-based financial decisions that can help support a secure and fulfilling retirement.
Understanding Longevity Risks
Living longer comes with the need to prepare for more years of expenses, and several factors can impact long-term financial security.
Healthcare Costs
Medical expenses tend to rise as we age, and while Medicare provides essential coverage, it does not cover everything. Medigap insurance can help with some out-of-pocket costs, but long-term care, such as nursing home stays or home health care, requires additional planning.
Inflation and Cost of Living
Over a 20- to 30-year retirement, inflation can chip away at savings. Everyday costs like groceries, utilities, and fuel continue to rise, making it harder to maintain the same lifestyle over time. In Texas, while there is no state income tax, retirees may still face rising property taxes, housing costs, and insurance premiums, which can strain fixed incomes.
Lifestyle and Family Responsibilities
Many retirees find themselves supporting aging parents, adult children, or grandchildren. These additional responsibilities can place unexpected pressure on retirement funds, especially when combined with rising living costs. Recognizing these potential uncertainties early can help you adjust spending and long-term financial decisions.
PAX’s advisors specialize in retirement planning in San Antonio, providing the guidance you need to confidently navigate future challenges.
Steps To Prepare
A longer retirement requires careful planning, especially when it comes to maximizing income and managing expenses. Taking the right steps now can help build a strong financial foundation for the years ahead.
Maximizing Savings and Investments
If you’re still working, increasing retirement contributions can make a significant difference. Taking full advantage of 401(k)s, IRAs, and other tax-advantaged accounts can help grow savings faster while reducing taxable income.
Catch-up contributions: If you’re 50 or older, you can contribute extra to retirement accounts, allowing you to accelerate savings during peak earning years.
Additional contributions for ages 60 to 63: Those in this age group have an expanded opportunity to contribute more to employer-sponsored plans, such as 401(k)s and 403(b)s, helping to bridge any remaining savings gaps before retirement.
Taking full advantage of employer matches: If your employer offers a 401(k) match, contributing at least enough to receive the full match is an easy way to boost retirement savings with essentially free money.
Maximizing Social Security: Delaying Social Security benefits beyond full retirement age can result in higher monthly payments. Factors like life expectancy, health, and spousal benefits should be considered when deciding when to claim.
Managing Long-Term Care Costs
Medical expenses, particularly long-term care, can place a financial burden on retirees. Medicare and Medigap insurance provide necessary coverage but do not pay for extended nursing home care or in-home health services. Planning for these expenses in advance can help prevent financial stress later.
Options for covering long-term care include:
- Long-term care insurance – Provides coverage for nursing homes, assisted living, and home health care.
- Hybrid insurance policies – Combine life insurance with long-term care benefits.
- Personal savings or annuities – Some retirees set aside dedicated funds to cover care costs.
It’s also important to consider the preferred location for receiving care. Some prefer aging in place with home health services, while others may need to transition to assisted living or other care facilities eventually. Factoring these possibilities into your retirement plan provides greater financial clarity.
Faith and Longevity Planning
For those who incorporate faith into financial decisions, retirement planning can be both a practical and spiritual process.
Trusting in God While Preparing Wisely
Faith teaches the importance of stewardship, meaning financial decisions should reflect responsibility, generosity, and long-term planning. Trusting in God is essential, and preparing for future needs is also a form of faith-driven wisdom.
Investing With Purpose
For those who want their investments to reflect their values, Biblically Responsible Investing (BRI) offers a way to support companies that align with Christian principles. This approach screens investments to avoid industries that conflict with faith-based values while focusing on those that make a positive impact.
Long-Term Investment Strategies
A diversified investment portfolio helps manage risk over an extended retirement. Many retirees benefit from a core-satellite strategy, which includes:
- Core investments – Stable, diversified assets that provide long-term growth.
- Satellite investments – More dynamic investments that can offer growth potential based on market conditions.
Combining faith-based financial planning with a strong investment strategy allows you to build wealth while staying true to your beliefs.
About PAX Financial Group
At PAX Financial Group, we help retirees plan for long, fulfilling lives by combining financial expertise with faith-based principles. Our team has extensive experience providing personalized wealth management services to successful individuals, families, and business owners.
As fiduciaries, we are committed to acting in your best interests, offering objective guidance tailored to your unique financial goals. Our expertise lies in addressing complex financial needs that require proactive management, making sure every aspect of your retirement and investment strategy is handled with care.
Based in San Antonio, Texas, we are a locally owned and independent firm offering comprehensive financial assessments, investment management, and insurance solutions. Whether you’re planning to retire in Texas, need investment guidance, or are exploring charitable giving options, we’re here to assist.
With the right financial strategy, retirement can be secure, meaningful, and fulfilling.
Ready to start a conversation? We’re ready to listen. Schedule a free, no-obligation consultation here.
