Just because deciding to retire shouldn’t be scary doesn’t mean it isn’t. For so many people, the uncertainty of how, when, or even if they can retire is overwhelming. All too often that overwhelm translates as paralysis — the inability to move forward in any direction or make a decision.
Our team at FSB is determined to empower our clients with the confidence to make educated, thoughtful decisions about their options.
Common Retirement Concerns
There is no shortage of concerns when it comes to retirement, but the following three possibilities cause the most stress to the average person.
1. Not Having Enough Money – This is an obvious concern. What happens once you’re no longer collecting a paycheck? Have you saved enough to see you through retirement? With the future of Social Security on shaky ground and the average lifespan longer than ever before in history, this is a real worry. Of course, the real issue isn’t just about having enough money but having enough money to continue affording your current lifestyle.
According to Marketwatch, older people fear this more than the death: “Some 43% said their greatest fear about retirement was outliving their savings and investments, making that the top fear — over loneliness, boredom and even declining health, among other fears, according to a survey of more than 2,000 workers ages 50 and older released in December by the Transamerica Center for Retirement Studies.”
2. Struggling to Afford Rising Costs of Healthcare – It’s no secret that the aging process is often accompanied by health concerns. Certainly, the current COVID-19 crisis has emphasized how life-changing an unforeseen health crisis can exact a financial, as well as physical toll. Research shows that healthcare costs continue to rise faster than inflation, which adds to many people’s sense of dread regarding retirement.
Running parallel to this is the concern regarding what happens when a spouse passes away. According to Phil Lubinski, CFP, “In addition to the cost of healthcare and hospice, surviving spouses often wonder whether they will have enough money to cover their new expenses and offset the reduction in Social Security benefits and pensions.”
3. Inability to Cover Expenses with Insufficient Investments – Right in line with not having enough money, this concern speaks to a broader economic uncertainty; for instance, what happens to the income supported by your investments in the event of a recession or any other market downturn. However, wondering will the stock market crash in 2021 or further down the road isn’t productive and it’s certainly not something you can control.
That word control is the key to managing these retirement concerns and bringing a sense of calm to the retirement process. The problem is so many people don’t know where to start or feel too overwhelmed by these issues and unknowns that they do not move forward with important decisions that will impact their financial future.
Take Back Control
Educating and empowering your decision-making is where our team comes in. For each of these concerns — and any others you might have — know that we have seen it all and are eager to present you with various options and solutions. Problem-solving and strategizing with our clients through open and honest conversations are the cornerstone of our expertise and customer service.
Don’t wait to determine your next steps. Contact us to set up a time to discuss your options and empower you with the knowledge you need to take control of your retirement — and your future.