What Are Your Retirement Worries?

Peace and Harmony, Uh-Huh

Even though we are led to believe that our retirement years will be the most peaceful, harmonious and stress-free period of our lives, do not be misled.  Your retirement years can only be free from stress and worry if you understand what issues you will face in retirement and deal with them ahead of time.

Money, Money and Money

Money concerns are usually the #1 cause of stress during ones retirement years.   If you do not have enough money to live on or are worried about outliving the retirement income you do have, how can you live in harmony?

You Are Not Alone

Ever wonder what other individuals worry about in regards to retirement?  Most people probably have the same retirement worries that you have.

The Top 6 Retirement Worries

#1 – Loss Of Job

Many individuals close to retirement worry that they will lose their jobs and not be able to save the additional money they will need to afford to  retire.   In many cases they need to play catch up because the value of their retirement accounts have dropped so drastically.

  • What can you do about risk of job loss?

Nothing is guaranteed, but you improve your chances of keeping a job if you have the experience over a younger employee.   Find an employer that treasurers your experience, wisdom and maturity.

#2 –  Cannot Afford To Retire

The concern of many is that they will never have enough money to afford retirement.   They will never save enough to be able to walk away from their job.  They worry that they will have to work much longer than they planned for.

  • Dealing with retirement affordability?

If you are close to retirement age use a retirement calculator.  Find out how much more money you will need to afford retirement; you may be closer than you think.

Over contribute.   Max out your 401k retirement plan at work.  Contribute to a Roth IRA.   Reduce your expenses, that will give you extra investment money.   Invest money like crazy while you have still have a pay check.

#3 – Outliving Retirement Income

Did they save enough money before they retired?   How long will they live?   Will the money they saved last as long as they do, what if it doesn”t?   These are all real concerns of retired individuals.

  • How to make your money last as long as you do?

Look into annuities.   It”s common financial knowledge that an annuity will pay you a guaranteed stream of income for life.    Before investing any money into an annuity, do your research.  Find out which type of annuity works best for you: deferred, immediate, fixed, variable, indexed.

#4 – Not Enough Money For Health Care

Once retired, many individuals worry about the cost of health care.   They are very worried that they will not be able to afford it, especially if they develop a long-term, critical illness.

  • How to afford retirement health care?
Retirement worries

photo by banner-retirement-plan2

Health care in America is in a quandary.   The federal government is trying to pass off Obamacare as a workable solution for the high costs of health care; but many financial experts doubt that Obamacare will solve anything.

Medicare is still limping along, but it is also broke.  Medicare does not cover all medical expenses anyway.

Certain expenses for long-term illnesses are not covered by health insurance, Medicare or Medicaid.   These expenses are your 6 Activities of Daily Living (eating, bathing, toileting, dressing, walking and continence).   Your ADL”s are covered under a long-term care insurance policy.

You can buy a long-term care policy on-line, through a financial planner or insurance agent.   Get several quotes; the premiums vary depending which features you choose and which state you live in.

#5 – Becoming A Burden

Many people worry that their retirement income will not last and they will end up broke, forcing them to become dependent upon their family.

  • How to avoid family dependency?

Your family loves you, if you do end up with them, they will gladly take care of you.   To avoid that outcome though, buy annuities.   You will have a guaranteed stream of income.     Another way to help yourself remain independent is to delay retirement as long as possible to give yourself a longer period of time to save money.

#6 –  Outliving A Spouse

The concern about outliving spouse without enough money is a worry many older retirees share.

  • Dealing with spousal concerns.

Buy life insurance.  The death benefit will be paid out tax-free and can be used to supplement your spouses retirement income.

You Need Worries

What would retirement be without worries?  Boring?  Some retirement worries you can fix, some you just do the best you can at avoiding.  It should help to know that you are not alone and others have the same worries and concerns as you do.