Retirement can be a rewarding and exciting time of life. But it can also come with its own set of worries and concerns — from financial instability to health problems, there are several potential issues retirees must prepare for and plan around. Here’s an overview of the most common retirement problems, and how you can best manage them:
Financial Instability
Financial instability is one of the most significant problems retirees face. Without a steady income from a job, you must rely on your retirement savings, pension payments, or social security benefits as your main source of money. This can be a hard adjustment to make and it’s important to budget accordingly and carefully manage your finances so you don’t run out of money.
Health Problems
Retirement can bring an increased risk of health problems due to aging and lifestyle changes. This is why it’s so important to stay active, eat well, and get regular check-ups with your doctor in order to remain as healthy as possible. Make sure you have a comprehensive health insurance plan that covers all of your needs and that you’re taking advantage of any benefits available to you.
Social Isolation
Retirement can also bring an increased risk of social isolation. Without a job or the same daily routine, retirees may find themselves cut off from the people and activities they once relied on for their sense of community. It’s important to stay connected by joining clubs and taking classes, going out with friends, or volunteering in the community.
Housing Issues
Retirees may also face housing issues if their retirement income is too low to cover their expenses. This can be a particular problem for those living alone or in high-cost areas. Fortunately, there are several options available for retirees who need assistance with housing, such as subsidized rentals or reverse mortgages.
Lack of Insurance Coverage
Retirees may also have a hard time finding adequate insurance coverage. Many traditional employers no longer offer retiree health or life insurance, leaving retirees on their own to find the coverage they need. Shopping around for various types of insurance is an important step for any retiree.
Low Interest Rates
Retirees relying on their savings may also be affected by low-interest rates, which can make it difficult to generate enough income from their investments. As a result, retirees must seek out alternative investment vehicles such as mutual funds or annuities in order to maximize returns and ensure a steady stream of income.
Finally, it’s important to remain socially engaged and connected with others in order to maintain your mental and emotional well-being. Finding activities that bring you joy — whether it’s gardening or joining a local club — can be just as important as managing your finances. With the right preparation and attitude, you can make the most of retirement!
Work with us
Our experienced financial advisors at Independent Financial Services hold numerous designations and accreditations. We pride ourselves in serving clients with devoted guidance and individualized service. We are well-versed in handling your financial needs through every phase of life.
Contact us to learn more about our retirement planning services!
Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. Material provided by Redfern Media, an independent third party. Raymond James is not affiliated with Redfern Media.