Worried about retirement? You're not the only one; in fact, some of the most common questions our retirement plan advisors field are related to concerns and fears about retirement.
Some of the most common retirement worries include:
- Fear of outspending retirement savings
- Worries about not having enough money to retire
- Concern about losing one or two employment paychecks
- Anxiety about the cost of healthcare and long-term care
The good news is that facing these fears head-on can go a long way toward easing your mind. Here's what our retirement investment advisors have to say about quashing your retirement worries.
Financial Strategies for Retirement: Be a Super Saver
Many pre-retirees worry about not having enough savings to quit working -- or to last through the rest of their lives. Fight back by becoming a super saver:
- Build up your nest egg,
- Contribute the maximum to your 401k or individual retirement account
- Reduce the support you provide to your grown-up children
- If possible, up your work load now and save your earnings
Speaking of increasing your work, a majority of people plan on continuing to work at least part-time into retirement. This additional income goes a long way toward alleviating money anxiety.
Wealth Management Solution: Downsizing the Big House
If your current house or hometown isn't affordable, consider downsizing your home or moving to a less expensive locale in another part of the country -- or even in another country. If you want to stay near family, purchase a smaller home and save on your mortgage, utilities and maintenance payments. While the thought of moving may be scary, so is the thought of running out of funds in retirement.
Healthcare Costs and Wealth Planning
Though healthcare needs tend to increase with age, the picture isn't bleak. The Affordable Care Act offers many medical benefits to seniors; along with the expansion of Medicare, preventative and wellness visits are free.
In fact, expanded Medicare services are estimated to save seniors an average of $4,200 (from between 2014 to 2021), thanks to lower prescription medication costs, free preventative care, and lower overall medical costs. Since the Act was passed in 2010, seniors have already saved almost $9 billion on prescription drug costs alone.
Comprehensive Financial Plan and the Loss of a Paycheck
For many pre-retirees, one of the most worrisome factors about retirement is the thought of losing that regular paycheck -- or two, for working couples. Ease your mind by determining how much Social Security you'll be eligible for, and adding in your other assets.
You may want to consider purchasing an investment tool that provides regular disbursements for a pre-set length of time. Work with your wealth advisor to choose the investment that's right for your situation.
Long-term Care: Include it in Your Strategic Financial Planning Process
A majority of adults over age 65 will need long-term care at least once in their lifetimes. With life expectancies on the rise -- and the costs of long-term care increasing, as well -- it's an understandable concern. While no-one likes to imagine a time when they can't take care of themselves, planning ahead can offer peace of mind. Purchasing long-term care insurance helps offset the costs associated with long-term care. Keep in mind, the younger you are when you purchase this insurance, the less it generally costs.