You have the life experience to know that you always have to plan for the unexpected. Instead of letting these situations risk derailing your retirement budget, plan for these hurdles so you can be prepared no matter what comes your way in retirement.
1. Long-Term Care/Healthcare Costs
Healthcare costs can pose one of the single greatest risks to your retirement income. And when you factor in custodial care to the healthcare equation, costs can skyrocket even more. When planning for your retirement healthcare, it’s important to remember that Medicare, Medicare supplemental plans and private medical insurance don’t cover long-term, in-home maintenance or nursing care. The right long-term care policy and coverage can help protect the income you rely on while allowing you to choose the type of care you need.
2. Change in Housing Needs
In retirement, your housing needs may change. If you're living independently, further into retirement, that may no longer be the best option. You could want to move closer to your family or you may need to move into a retirement or assisted living community.
When you’ll need to change your living situation is unclear. What’s also unclear is how this will affect your budget. Residences like nursing homes or assisted care facilities may be more expensive than what you’re currently paying for housing. To keep a change in your housing needs from unraveling your budget, make sure you do the necessary research to find a housing solution that’s within your budget.
3. Inflation/Interest-Rate Risks
For anyone living on a fixed income, an increase in inflation or a decrease in the interest rate of your savings or investment accounts can have a significant impact. With lower interest rates on savings accounts and other assets, investments may not have the same earning potential you were anticipating. You may feel the need to save more and increase the principal of your investments to continue earning adequate retirement income and battle against inflation increases.
If you want to learn more about what you can do to avoid these risks or reduce their effects on your retirement income, contact our office.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.