Non-Investment Income Risk
Income sources you may view as “guaranteed,” such as a pension or social security, also may be at risk. Would the loss of one or both of these cripple your retirement plan? And how guaranteed should you assume they are? More and more employers are shifting responsibility to employees to save for and manage their retirement funds. Are you sure your funds are allocated the way they should be? We hear constantly about the ills that threaten the future of the social security system. Are you planning a contingency that does not rely on these funds, or that accounts for a reduction in your social security or pension income?
The rising cost of healthcare is a harsh reality that can hit retirement funds hard. Healthcare costs have far outpaced the rise of general inflation and workers’ earnings over the last few decades. Fidelity studies show that a couple can expect to spend, on average, $285,000 on healthcare over their joint retirement. Are you planning on these costs eating into your retirement nest egg?
These are just some of the risks to your successful, comfortable retirement. You should meet with a qualified financial advisor to discuss all the risks to your retirement and design a comprehensive financial plan to address them. If you would like to speak with us about your retirement, please contact us today.