The top 4 Retirement Concerns—and How to Handle Them

Author: Spencer Smith

When you’re young, the idea of retirement seems so glamorous. You picture white sandy beaches, flip flops, and not a care in the world. But, as you get closer and closer to actual retirement planning, you start to have some retirement concerns. Don’t worry–you’re not alone! 

It’s actually very common to feel some sense of retirement anxiety. What if you outlive your money? What if your health needs change over time? How do you manage your healthcare costs? How do you go about selling your home?

Before you let your retirement concerns take away what should be an exciting time in your life, it’s essential to get the answers to your biggest questions.

1. You’ll Outlive Your Current Savings

One of the biggest and most common fears, especially in a post-pandemic world, is that your money might not see you through your entire retirement. According to the Social Security Administration, nearly 25 percent of all adults currently 65 years old will live to see the age of 90. While a longer life is great, it’s not unreasonable to be concerned you’ll outlive your savings account. 

So, what can you do to ease your retirement anxiety? Start planning as soon as you can. Meet with a financial advisor who can assess your current financial situation, discuss your goals, and help you set realistic timelines to help boost your savings. Once you determine how much you’ll need in retirement, you can start making plans that fit your pre-defined budget. By finding retirement living that consolidates all your monthly bills into one single monthly bill, you can more easily manage your finances and feel confident you have saved enough money. 

2. Ever-Growing Medical Expenses

You can’t predict the future. You have no idea how your health will change as you age, and that uncertainty can cause some retirement concerns. As medical costs continue to rise above average inflation, you might need to set more money aside to cover any potential medical costs. 

If the idea of dipping into your nest egg to cover your or a spouse’s medical bills in retirement causes you major concern, there are some options. You can consider investing in a life insurance policy or long-term care insurance to cover unexpected costs without sacrificing your savings. Or, you could start investing heavily into an HSA account through your employer or insurance company to invest pre-tax funds that would act as a safety net in the event of any unexpected medical costs. 

3. Death of a Spouse

When you envision retirement, you picture spending it with your spouse or loved one. However, that’s not always what happens, and the idea of entering into retirement alone can be really scary. Not only is an unexpected loss the cause for emotional distress, but it can also put a strain on your retirement income and living arrangements. 

The best thing you can do to prepare for an untimely loss of a loved one is to meet with your financial advisor and work to create a cushion for any change in tax filings or retirement income. Also, having a life insurance policy in place for you and your spouse can provide an additional safety net in the event one of you should pass away. 

In terms of planning your living arrangements, it’s always in your best interest to downsize proactively. Not only will downsizing make your life more manageable financially, but it can also provide you with more flexibility and control should they pass away. 

4. Market Changes

Market volatility is nothing new. Historically, however, the markets have gained over time. You might have retirement anxiety around any dips in the market taking place as you near your retirement date. Your investments could diminish, and you could lose your nest egg. 

The best thing you can do to protect your investments is to change your strategy. The closer you get to retirement, the more conservative you need to be in your investment approach. Keep some of your money in more balanced investments such as CDs or bonds.

How Upside’s Curated Senior Living Solutions Can Help

Looking for a smarter way to take the guesswork out of retirement? Upside can help. We can help you find curated apartments that cater to your lifestyle now and as you grow older. We can connect you with services and amenities you care about, and we can do it all in one convenient monthly bill. Learn how you can enjoy senior living without any downsides.

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