While 77% of people are happier in retirement than they were when they were working, retirement does face challenges that may be unexpected. Milwaukee’s Journal Sentinel works on “Addressing the four most common post-retirement challenges.” Longevity, or the fear of running out of money during your lifetime, is one of the biggest risks in retirement. As many people live to age 90 and beyond, retirement savings need to stretch farther than ever before. Health care costs are rising fast and the fact that you need more health care as you age makes this added cost a stressor for many retirees.
Becoming a widow is one retirement challenge that no one wants to think about. But the reality of the situation is that 75% of married couples have a spouse who spends at least five years as a widow or widower. The need for long term care of some sort is becoming a bigger challenge for retirees. Four out of five women and three out of five men will need some type of long term care for a chronic health condition during their lifetime.
There are some solutions to these four major retirement challenges. Annuity products help to make sure that you do not run out of money in retirement. The guaranteed income from an annuity can last over a retiree’s lifetime and even include death benefits to last over a spouse’s lifetime. Purchasing Medicare supplement insurance helps retirees face the increasing health care costs by covering whatever Medicare does not. Some life insurance policies work in terms to cover long term care. This long term care insurance is important to help cover the cost of extended care and the life insurance policy helps ensure that a widow is cared for in the tragic death of a spouse. Insurance against financial doom will help relieve retirement challenges.
Written by Rachel Summit
Follow Finance Mama on Twitter https://twitter.com/#!/financemama