Tuesday, May 8, 2012
5 BIG RISKS TO YOUR RETIREMENT, PART 1
6:51 PM | 
Posted by
pensionfinancialservices |
It’s that old
risk-reward ratio that’s often the conundrum of our lives. The latter is what
we want in our retirement years, but keeping abreast of the former—in
particular five very distinct risks—may help you protect your savings and
income. A Fidelity Viewpoints checklist of the “five rules of thumb to keep in
mind now” ran several months ago, but is just as relevant today for those
already retired or nearing it.
The first in a series
of posts drawn from that piece notes the importance of having a plan for
rising health-care costs. How staggering might that cost be? We hope you’re
seated--according to a Fidelity estimate, a 65-year-old couple who retired in
2011 would need more than $235,000 to cover health costs during their
retirement years. And that’s just using life expectancy data--many people will
live longer and have higher costs. Since Fidelity’s annual estimate began in
2002, costs have been rising by 6% a year.
And that doesn’t even
take into account possible long-term care (LTC) expenses, which can make even
the hardiest among us feel faint. Among the statistics cited: “the average
private-pay cost of a nursing home is about $70,000 per year and exceeds
$100,000 in some states. Assisted living facilities average $34,000 per year.”
So what to do? Yes, yes,
we know—don’t get sick. But of course that’s a hope, not a plan. So the experts
at Pension Parameters Financial Services may be what the doctor ordered in
terms of helping you devise a health-care budget in conjunction with all of
your retirement needs and goals.
In Part 2: Expect
to Live Longer, and how that impacts on your retirement portfolio.
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