Top Three Retirement Challenges

by | Aug 15, 2019 | News | 0 comments


Retirement is like fog. The further you are the harder it is to see it. But, like fog, it creeps up on you. The last thing you’ll want to do is be underprepared. Retirement is meant to be blissful and full of new achievements. Yet so many retirees are stuck working through these common challenges.

1.       Steady Income

Our lifespan is continuing to increase every year. Yay, longer lives! At 65, the average male and female life expectancy are 84 and 87, which has risen from 78 and 80 since 1940. Longevity is a great thing! But many Americans wonder how they’ll afford to live in retirement. Basic living costs and paying off debt can eat all, if not more than, your Social Security benefits. Without a proper plan, you can easily go bankrupt a few years after retirement. With the right plan, there are many ways to prevent outliving your money. Talk to a financial professional to create the best plan for you based on your unique situation.


2.       Health Care Costs

We can’t predict if we’ll need long term care, but many Americans will. The easiest way to stay prepared is planning as if you’ll need this. LTC and other medical expenses can be pricey, and Medicare can cover some of the costs, but it won’t cover everything. There are many possible medical expenses in retirement—most you won’t be able to predict. LTC Insurance, Health Savings Account, or an annuity are a few options that can help fund health costs that Medicare won’t cover.


3.       Taxes

By now we should be used to taxes, right? How can we if the details of these taxes constantly change? The RMD is one of the most confusing and frustrating taxes for retirees. This tax can potentially eat up chunks of retirement savings but miss a distribution and you’ll incur a 50% penalty! There are several strategies to reduce your tax bill in retirement. A financial professional such as a tax specialist can potentially develop a specialized approach to reduce your RMDs.


Take Back Your Retirement

Retirement is great! You have an extra 40+ hours a week, get access to your career-long savings, and receive discounts and perks. Still, new tax and retirement laws are created almost yearly. The newest potential change in the making, the SECURE Act, can potentially delay RMDs and benefit some retirees.

Changes or not, retirement is unpredictable. Giving up steady income is scary, especially if you aren’t familiar with investing. That’s where we come in. At RGA, our goal is to help you live your best possible retirement while making sure you understand the process. We specialize in a team approach to retirement planning, so you don’t have to bounce around town to get a complete retirement plan. Our financial consultants, attorney, tax specialist, licensed insurance agents, and client services can help fulfill your retirement needs. Let us show you how stress-free retirement can be! Call 1-800-467-8152 or email to schedule a complimentary consultation.