Although Social Security benefits are meant to make your retirement years easier, many still struggle financially. As a result, some people end up working part-time or even full-time jobs during their retirement in order to keep up with bills and expenses. The following are six things that can get in the way of a retiree achieving long-term financial stability.
Medical care expenses
Longer life expectancies, increasing medical and medication expenses, fewer employer-sponsored retiree benefits and the restrictions of Medicare make medical costs a huge risk in retirement. It is essential to obtain sufficient medical insurance to supplement Medicare (if possible) and to have adequate resources to pay for these expenses and other medical-related costs not covered by your insurance plan.
Partaking in the stock market can give your retirement income and savings the chance to keep up with inflation. On the other hand, participating in the stock market means taking the risk of market losses. Market declines in the beginning years of retirement can drastically lower the amount of money you can obtain from your savings.
Long-term care needs
The cost of care for an unanticipated or long-term sickness not covered by Medicaid or private health insurance could require you to prematurely drain your retirement funds. According to a recent study, approximately 12 to 15 percent of retirement expenses were linked to long-care costs.
The median life expectancy is just that—a median. There is always the chance you will outlive this average age and your money. As individuals live longer and possibly face medical or employment reasons to retire early, it is important to be ready for a longer retirement than you might anticipate and lessen the adverse effect to your retirement revenue.
Taxes and inflation
Both inflation and taxes can take a huge chunk from your retirement savings—inflation by lessening your purchasing power, and taxes by lessening your revenue and leaving you with less cash to spend. Your retirement plan should include techniques to guard your assets from tax and inflating risk by guaranteeing you have sufficient revenue streams that include tax-efficient choices.
Leaving a legacy
As people grow older, their wish to leave a financial legacy to charities or loved ones usually increases. Without proper planning, you may not be able to meet your legacy objectives. If you want to make an impact beyond your lifetime by leaving behind this type of legacy, you will need to balance that wish with the need to fund your retirement. On the other hand, with proper planning and the right mix of assets, it is possible to have a stress-free retirement while also leaving a financial legacy behind.
Have you recently retired, yet you are finding it somewhat difficult to pay for bills and other expenses? Has your lifestyle changed drastically from your working years due to a lack of income? When retirement payments, annuity payments, or structured settlement payments aren’t enough, we may be able to help. Peachtree Financial Solutions purchases structured settlement and annuity payments from individuals that would prefer to receive cash now. If you are receiving long-term annuity or structured settlement payments, you can turn those periodic payments into lump sum payouts. With lump sum payouts, there is no more waiting for your money to come in on a monthly basis. You can receive cash now, making your retirement years less stressful. To learn more about receiving lump sum payouts for the sale of structured settlement or annuity payments, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.