May 20, 2022
Common Post-Retirement Risks You Should Know
Planning for your retirement early in life is pretty good financial planning. However, you must understand that life is uncertain and can take unpredictable turns at any time. Ironically, the early you retire, the more risks you may have to face after your retirement, which can reduce the efficiency of your retirement plan, no matter how good it is. If you hire a retirement planner, they will consider all the risks that may hinder your plan. But if you are working independently, you must learn about the factors leveraging your financial soundness post-retirement.
Let us discuss the four common post-retirement risks you should know about-
The Most Common Post-Retirement Risks-
Risk #1- Personal and family risks: Unexpected personal events like the longevity and the death of a member needing financial support come under personal and family troubles. Other personal risks are employment risks, death of a spouse or family member, change in marital status, and additional unforeseen needs of family members. Personal risk also involves longevity risks where the person lives longer than expected and eventually runs out of money.
Risk #2- Healthcare and housing: Any medical-related costs like long-term nursing care, increasing rates of health care, unexpected medical bills, change in housing needs, and lack of caregivers for the dependents and minors.
Risk #3- Financial risks: A person can face many financial risks during their lifetime, and not having a regular income during retirement can make things worse. The changing government norms and regulations can lead to inflation, interest-rate risks, stock market risks, and business risks that can affect your finances and hinder your plan to live stress-free during your retirement.
Risk #4- Public policies: Government policies affect our lives in multiple ways, and they can be especially cruel for retirees. Policy risks may include an increase in taxes and a reduction in entitlement benefits from Medicare and Social Security. Your retirement planner understands that these policies can change at any time and will create a plan that includes all the variables.
About Castle Wealth Group
Contact Castle Wealth Group for all your retirement planning needs. We build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website, call us at 844.885.4200, or email us for expert financial advice.