Retirement Risks You Should Plan For

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover essential retirement risks and how to mitigate them with safe money strategies. Plan for a secure future today! Learn more at SafeMoney.com. Editor’s Note: This is Part 2 of a two-part series on retirement risks that we should definitely plan for. For more information on retirement money mishaps and how you can enjoy a comfortable retirement lifestyle, you may find helpful answers in  The New Retirement Report .  In the first half of this series, we discussed 5 of the 10 Retirement Risks  you need to plan for. With apologies to the Late Night Show and Late Show , no Top 10 List would be complete with a stop at the halfway point. So, without further ado…. Here are 5 other retirement risks that retired and working-age investors should definitely heed. As you read through this list, you may want to consider the strategies your plan has to manage these risks. If you are unsure or would like more confidence in your plan, a retirement-knowledgeable financial professional can help you. Their guidance can help identify potential financial gaps, clarify your needs, and solve for those shortcomings. Retirement Risks to Watch Out For Without further ado: #6: Healthcare & Long-Term Care Cost Risk Research data indicates healthcare and personal care needs will be a great cost burden for future retirees. To put this in concrete terms: A couple retiring in 2017 would need an estimated $275,000 to cover health care costs in retirement, according to Fidelity. That’s a 6% increase over 2016. This estimate relates to those with traditional Medicare insurance coverage and considers premiums, co-payments, deductibles, and out-of-pocket drug costs. It excludes the cost of a nursing home or any long-term care (LTC) that might be needed. And long-term care might well be the most bitter—and expensive—pill to swallow. The Genworth Cost of Care Survey in 2021 found these monthly median costs for long-term care: Home Health Care Homemaker Services – $4,481 Homemaker Health Aide – $4,576 Assisted Living Facility Private, One Bedroom – $4,300 Nursing Home Care Semi-Private Room – $7,756 Nursing Home Care Private Room – $8,821 #7: Tax Burden Risk Long-range tax strategizing will be especially crucial if you’re counting