Retirement Fears

October 13, 2017 | Daniel Ruedi
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Retirement fears keeping you awake at night?  You’re not alone!  But don’t worry, financial advisors are here to help!  Below are some of the most common retirement fears and how a financial advisor can help ease them:


I’m afraid I will run out of money

According to a survey by Transamerica, running out of money is the most common fear for retirees, with over half of respondents reporting having this fear.

Advisors can build you a retirement spending plan with a high probability of success – so you know what you can safely spend without running out of money.  They can also help you make tweaks to your plan in the event a market environment shows up that would require you to temporarily reduce your spending to avoid depleting your assets.


I’m afraid I won’t be able to retire on my terms

Advisors can build retirement plans that can objectively show whether or not you are on track to the retirement you would like.  If you are, that’s great – advisors often get to give people the good news that they are on track to live a retirement lifestyle that is even better than they had imagined.  They can provide you with options (like retiring early) if you have them. 

If you aren’t on track, advisors can provide you with suggestions and help you make changes to make sure you achieve your goals like saving more, retiring a year later, etc.


I'm afraid I will need long-term care

There are many levels of uncertainty with respect to long-term care.  What is the likelihood I will need it?  What level of care will I need and how much will it cost?  There are many important factors you must consider in your long-term care planning.

Advisors can help you work through the decision to either self-fund a potential long-term care need or use insurance, and make sure a long-term care expense will not wipe out your finances.


I’m afraid of cognitive decline, dementia, or Alzheimer’s

Over 1/3 of survey respondents to the Transamerica Retirement Survey reported having this fear.  Fortunately, there are many things you can do to prepare for declining health in the later years of retirement.   Simplifying your finances, keeping your spouse in the loop on financial decisions, and preparing for long-term care before your health declines are great starting points.

When it comes time to pass off responsibility for your finances to someone else, a financial advisor can serve as your “financial caretaker” and make financial decisions in your best interest when you are no longer able to. 


I’m afraid the market will drop

This is a rational fear, because it is without a doubt going to happen at some point.  Fortunately, it doesn’t matter if you build assumptions into your financial plans that incorporate both good and bad markets.

The bigger x-factor is your behavior in these times.  Are you going to be “spooked” and sell out of your investments, turning a temporary decline into a permanent loss?  An advisor can be the calming voice in times of crisis that prevents those mistakes from happening.