8 Risks Faced in Retirement

Content provided by Copia Wealth Management & Insurance Services


Retirement can be an exciting time in a person’s life. However, a recent survey shows that 78 percent of people do not feel like they will be able to retire comfortably, if at all. Here are the top eight risks that prevent people from confidently retiring.

1. Health Expense Risk

For those who had employer health care coverage, retirement may mean paying more for medical insurance (Medicare Parts B and D and Medicare Supplement policies). Even with insurance, some expenses will be paid out of pocket. Also, chronic or acute illnesses may mean more significant and unexpected out-of-pocket expenses.

2. Long-Term Care Risk

Chronic diseases, orthopedic problems, and Alzheimer’s can restrict a person from performing the activities of daily living, which can deplete your nest egg.

3. Market Risk

The risk of financial loss resulting from highs and lows in market prices.

4. Forced Retirement Risk

There is always the possibility that work will end prematurely because of poor health, disability, job loss, or the need to care for a spouse or family member. This event can quickly derail a retirement plan.

5. Employment Risk

Many retirees plan on working in retirement. However, they may be unable to supplement retirement income with employment due to tight job markets, poor health, and/or caregiving responsibilities.

6. Employer Insolvency Risk

Employer-provided retirement benefits are an important part of retirement security for many. If the employer has financial problems, employees may lose their jobs and in some cases their benefits.

7. Loss of Spouse Risk

The loss of a spouse is a major personal loss, and without planning, it can also result in a decline in income security. Many households unnecessarily and unknowingly risk losing 50 percent or more of their income by not planning. 

8. Unexpected Financial Responsibility Risk

Many retirees have additional unanticipated expenses during the course of retirement, in many cases due to family relationships and obligations.

We are here to help you better mitigate these risks and get you on track for a better retirement! Call us at 619-640-2622 or visit copiawm.com to get started today!


Elisabeth with book

Written By:

Elisabeth Dawson

President & CEO

LIC #0C72164, #0G81294

 

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Investment advice offered through Copia Wealth Management Advisors, Inc.

Copia Wealth Management Advisors, Inc. is a registered investment adviser.

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