Life insurance and annuities can strengthen a family’s financial plan, and offer more security for the unknown. In short, these financial tools can take pressure off of their portfolios.
Part of any retirement planning discussion will be discussing specific risks to retirement security such as behavioral risks, market risk, longevity risk, and inflation risk.
A recent study surveyed those 10 or more years from retirement, within 10 years of retirement, and retired individuals. Perceptions of those that are not retired compared to those that are different wildly. Nearly half of those not retired believe they will retire on their own terms because they will be financially ready. One third want to retire early so that they can have fun while they still can.
The reality is that over 50% of Americans retire earlier than expected after losing a job, or a medical issue forcing them to retire. Another finding from the study shows that 65% of those not retired believe they will have a part-time job while retired, when the reality is that 7% of those retired have part-time employment.
The number one concern most individuals have when it comes to retirement is running out of money before they die. The majority of us are worried about money in retirement, yet only 6% will set up a financial plan with a financial professional.
Nearly 60% of non-retired individuals worry about inflation eating away at their nest egg, preventing them from enjoying retirement. 52% worry about healthcare costs. Sadly, the vast majority of individuals have no idea how much healthcare costs today, or what it will cost in retirement.
There are innovative annuity and life insurance solutions to many of these present day worries. Building a solid financial strategy that considers many of these risks discussed will help achieve the dream retirement.