Financial issues for seniors

(THE MONEY PROS) - WHAT IS THE BIGGEST FEAR THAT SENIORS HAVE REGARDING THEIR FINANCES?

The most common fear among seniors today is outliving their income.  Cost of living, healthcare, and increased longevity are some of the major factors contributing to this concern.  Seniors want to know how to maintain their lifestyle during retirement and not run out of money.

HOW CAN SENIORS HELP ENSURE THAT THEY DON’T OUTLIVE THEIR MONEY?

Two things.  First, review their investment strategy and possibly make adjustments that reflect their current situation.  Second, consider using an investment vehicle that provides a guaranteed stream of income as part of an overall retirement income strategy.  This can include life and joint life options on pensions.  Another option is an immediate annuity that can guarantee income for life.  There are many types of annuities, so be sure to clearly understand the type of annuity that you are considering.

PRESUMING ONE HAS DONE A GOOD JOB OF SAVINGS UP FOR RETIREMENT, WHAT THREAT DOES THE COST OF HEALTHCARE PRESENT.

The threat of an unplanned healthcare event can drastically alter almost anyone’s retirement plan.  The cost of long-term medical care is extremely expensive and on the rise.  To ensure the safety of your retirement nest egg traditional long-term care insurance should be considered.  Other options include linked benefit products that have a savings and long term care insurance component.  Traditional long-term care charges an annual premium to provide for the daily cost of long-term care.  Linked benefit products allow you to reposition lump sum assets to protect the possible costs of long-term care.  Whether you fully or partially fund one of these plans it is vitally important to your retirement.