Top 5 Retirement Concerns People Can’t Afford to Ignore

Life is unpredictable. And for many, fear of the unknown can breed worry and concern. However, addressing those fears and planning ahead can be one of the best ways to manage an unpredictable future.

Retirement concerns for many people tend to center on health and money, which are in many ways intertwined. For example, your health plays into how long you can work, how much you’ll need to spend on insurance and medical care, where you can live, and your quality of life in retirement. Peace of mind in retirement comes with having planned ahead—putting you in control rather than at the mercy of the unknown.

The first step in retirement income planning is awareness—you have to understand the potential pitfalls before you can address them. That’s why we’ve put together this list of the top five common retirement income concerns many people face today, followed by some suggestions for how you can address them when mapping out your retirement income strategy:

1. Outliving your money

The general population is living longer, and many of us haven’t banked enough for retirement. Outliving your money includes the very real possibility of having to work through your golden years or living on a budget that may be just enough to hold you over from one Social Security check to the next. Use the Plan for a Long Retirement interactive tool to see the likelihood that a 65-year-old will live another 10, 20 or 30 years.

2. When to draw Social Security

Although you can begin to draw reduced Social Security benefits at 62, the longer you wait (up to age 70), the bigger the payout. Your decision about when to begin drawing Social Security benefits should be based largely on your health, how long you plan on working, and your assets.

3. Earning low interest rates

Paltry rates on certificates of deposits, money market, and savings accounts limit the options for growing retirement funds. If you’ve had to dip into emergency funds due to setbacks such as a job loss, getting caught up to where you need to be may not be easy. Revisit your retirement income strategy and consider exploring other income source options that may better meet your goals.

4. Paying long-term debts

The debts many people now carry later in life are different from those older adults had a few decades ago. For example, according to a 2014 analysis by the Consumer Financial Protection Bureau1, 30 percent of homeowners over 65 are still paying on a mortgage, and many people are carrying student loan debt well into their 40s and 50s. Having to pay down debt can prevent you from saving for retirement. This means you may need another means for generating income in your later years.

 5. Allocating assets

Licensed financial professionals have traditionally advised their clients to modify an aggressive asset management strategy the closer they get to retirement. If you need to create an additional revenue stream to supplement Social Security benefits, you may need to explore different options for income generation.

Options to Address Your Retirement Concerns

One way to hedge against these pitfalls is with a mix of insurance and financial solutions. Annuities, for example, allow you to supplement Social Security or a pension income by receiving a steady income stream for a set number of years, or even the rest of your life. The cash-value growth of variable and universal life insurance policies can provide additional income with better-than-average interest rates.

There are many more options are available, and a licensed insurance and/or financial professional can help you figure out where you stand in relation to where you want to be—and to help you get there when you’re ready.

Get started today by calling 844-880-8255 for a no-obligation retirement income checkup with a helpful Your Retirement Reality guide.

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