Financial Challenges
- Insufficient Savings: The most common concern is simply running out of money, especially with increased life expectancies meaning retirement could last 30 years or more. Many people underestimate the amount needed to maintain their desired lifestyle.
- Healthcare Costs: Medicare does not cover all medical expenses, and the costs of supplemental insurance, dental care, and potential long-term care can be substantial and unpredictable, often exceeding general inflation.
- Inflation: Even a modest rate of inflation erodes purchasing power over time, which is particularly challenging for those on a fixed income with a limited ability to generate new earnings.
- Market Volatility and Taxation: Swings in the stock market can impact retirement savings, while poor tax planning can lead to a significant portion of withdrawals from tax-deferred accounts being lost to taxes.
- Social Security Uncertainty: Concerns exist about the long-term dependability and adequacy of Social Security benefits to keep pace with rising costs.