Retirement planning isn’t just about envisioning serene beach days—it’s often tangled with concerns about financial stability. Research from Charles Schwab reveals that for a majority of Americans, retirement planning stands as the primary source of financial stress. Let’s delve into four prevalent retirement worries and potential ways to address them.
The fear of outliving savings haunts almost half of Americans, magnified by the fact that nearly 40% possess less than $5,000 in retirement savings. Phil Lubinski, CFP, of IncomeConductor, underscores the risk of exhausting funds in an extended retirement, urging proactive steps to counter this concern.
Even with diligent savings, doubts persist about investment performance, especially in volatile times. Lubinski highlights concerns arising from unexpected market downturns, like those witnessed during the Covid-19 pandemic, prompting reevaluation of investment strategies.
Rising healthcare costs present a significant threat to retirement funds. Fidelity estimates a staggering $300,000 might be needed to cover medical expenses in retirement, a sum escalating above average inflation rates.
The unexpected death of a spouse goes beyond emotional distress, causing financial upheaval. Lubinski highlights the potential loss of income and increased tax liability for surviving spouses.
Navigating retirement worries necessitates proactive planning. Seeking guidance from a financial advisor can instill confidence and alleviate uncertainties surrounding retirement.
Ken Cella, from Edward Jones Client Services Group, emphasizes the transformative power of a well-thought-out retirement plan. Collaborating with a financial advisor enhances financial comfort, evident from Edward Jones’ research revealing heightened confidence among those working with advisors during uncertain times.
Retirement isn’t merely an endpoint; it marks the inception of a new journey. Amidst the unknowns, preparing with a solid financial plan and advisor support not only addresses worries but also cultivates a higher quality of life in retirement.