DEPLETING THE RETIREMENT FUND 2/7

Of all seven on this list, completely depleting a limited retirement fund is the underlying fear causing the most stress for pre-retirees.

Determining how much money is enough to last through retirement so retirees can enjoy the golden years is an estimated guess, at best. The dollar, over time, loses its value, and living off more than interest depletes the nest egg principal.

Unexpected expenses, rising healthcare costs, vanishing pensions and Social Security benefits are all factors to consider when attempting to calculate just how much is enough to live comfortably for the rest of one’s life.

As far as major life transitions go, retirement is one of the most life altering. It affects an individual’s finances, self-esteem, self-identity, and eveninterpersonal relationships.

Unfortunately for some retirees, retirement is a choice made for them and not by them. Health issues, familial responsibilities and changing work environments are all factors when someone is forced to enter retirement earlier than planned.

There are also those who have come to the realization they are unable to retire when planned due to a lack of proper planning and saving.

Prior generations were able to retire with the safety net of a company or government pension to supplement their retirement savings in years past. Currently, these same pensions are on the verge of extinction due to declining benefits packages offered to employees.

For most pre-retirees, their identity as provider for their children and sometimes even senior parents is a part of how they identify themselves. However, retirement generally brings with it a change in financial status which can affect their ability to act as monetary safety net for grown children.

Having this conversation early on with adult children to cut the cord of financial dependence can limit unexpected expenses and protect limited retirement funds.

Funding an emergency fund early on in the planning stages will aid in ensuring unexpected expenses are not used to deplete the retirement fund and it can be utilized for the retirees to maintain some semblance of the lifestyle which they enjoyed during employment.

https://www.bestliferates.org/seniors/most-stressful-financial-concerns/
http://www.wunrn.com