The Risks Involved In Retirement Planning

The Risks Involved In Retirement Planning

August 24th, 2010 |

Author: admin

Retirement planning involves many risks but there are also numerous rewards. Careful planning for your retirement includes taking these risk factors into consideration.

One of the biggest risks and top concern of retirement planning is inflation. Many people get concerned that their money will not keep up with the pace of inflation. Building a cushion that allows for changes in the pace of inflation may insure that your retirement money will provide for all of your needs.

Another risk is outliving your money. With the average female living until the age of 85 and the average man living until the age of 82 it is wise to plan for investments to provide for you up until this age or even further. Women tend to outlive their spouse due to a longer life expectancy and the tendency to marry someone older. Many women are widows for around 15 years and losing a spouse can mean a significant loss of income. Married couples should consider joint or survivor investments that will protect the surviving spouse.

Healthcare expenses can really add up if you are not properly insured. Unexpected health problems can arise and you should be prepared in all cases. There is also the possibility of having to live in a long term care facility due to ongoing health problems and they are expensive. It is always wise to obtain long term care insurance for those unexpected occurrences.

Finally be realistic. Many people think that they need much more money than they do in order to retire and as a result become stressed out. Figure out what type of lifestyle you want to have in retirement and then plan accordingly.

For more information on risk management visit http://www.risks.asia.

For more information on retirement planning resources visit http://www.retirementplanning.asia.

About the writer:nbsp;nbsp;Ann Marosy is an accountant consultant and former university lecturer. She was formally a Financial Controller of a Fortune 500 Company and Finalist of SA Executive Woman of the Year.Ann is the author of ‘The Money Program’ book series which includes managing the stages of wealth creation formulas for budgeting debtfree program and investment strategies. Visit: The Home of The Money Program