Surprising Retirement Facts
While many individuals look forward to retirement, many retirees have significant financial worries and health concerns. Below are a few ways retirement might surprise you:
- It may be difficult to spend down your savings. After decades of accumulating enough money to retire, it can be psychologically and emotionally challenging to spend down that money. “They are going to feel like they spent a lifetime accumulating this pile, and the idea of spending this down is just repulsive.”
- You still need investment growth. Develop a plan to make your retirement money last the rest of your life. Learn how to minimize your risk in the portfolio, while also staying ahead of inflation and taxes.
- Many retirees rely on Social Security. For most retirees, Social Security is a significant source of income.
- Medicare does not cover everything. Although Medicare covers a large amount of the medical treatments older people need, there are several popular services it does not cover. For example, Medicare does not cover eye exams, eyeglasses, dental care, or hearing aids. Retirees who require additional long-term care will need to find another way to pay for it.
- Retirees are dating. If you outlive your spouse or divorce, you could find yourself single in retirement. Many single seniors begin meeting new people and dating.
- Moving is difficult. Although it may seem attractive to move to the Sunbelt, most retirees do not relocate for retirement. Relocating to a new community often means leaving behind family and a support system.
See Emily Brandon, 10 Surprising Facts About Retirement, U.S. News & World Report, Feb. 17, 2015.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.