Even when your finances are in a stable place, or even if you’re fairly affluent, retirement can still present unexpected challenges! There are plenty of factors that well-off retirees often overlook due to their financial comfort. But don’t fall into the trap of overlooking the risks of tomorrow just because you’re doing well today! Here are a couple risks wealthy retirees may neglect to include in their financial strategy:
- You might live longer than you’re expecting to.
You may believe you’ve adequately prepared for retirement, but have you factored in the financial requirements of your 80s? Or even your 90s? Have you gathered sufficient resources to live with ease until your 100th birthday? Many affluent retirees overlook this fact: Life doesn’t stop at 65. And this reality can be as exhilarating as it is worrying from a monetary perspective. As such, when formulating your retirement strategy, it might be wise to set aside more funds than initially planned.[1]
- Your lifestyle requires a budget, which requires a tailored income plan.
The transition to retirement can sometimes dampen the drive and ambition of career-focused individuals. Suddenly, they might find themselves grappling with a sense of aimlessness and a lack of compelling reasons to get out of bed each morning, unsure of what to do next. This is quite common during the initial phase of retirement, but it probably won’t last forever.[1] When you finally discover an activity or hobby that ignites your passion, it’s likely to come with associated costs. These expenses may appear insignificant in the short run, but consider their cumulative impact over two or three decades! It could be prudent to incorporate potential hobby-related expenses into your retirement planning to avoid unwelcome financial surprises in the future.
If you feel secure about your retirement funds, we encourage you to think again. To stay ahead, you always have to be aware of the next risk that may arise and be prepared for it. One mistake we see amongst retirees who have saved well is that they don’t put enough strategy into figuring out how best to draw down their accounts and use those savings to provide income that really helps them maintain their lifestyle. For someone used to being financially stable, having to strategize to maintain their stability may be foreign, but that’s why we’re here to help.
To prepare properly, consult with our financial professionals for a complimentary financial review. We can double-check your plans and provide recommendations that are customized to your specific circumstances. So don’t hesitate to contact us today!
