Risks

Five Retirement Risks Families Often Overlook


The short answer

“Running out of money” is really the result of several quieter risks working together. Understanding these five — and planning for them early — is what separates a hopeful retirement from a confident one.

The five risks

  1. Sequence-of-returns risk — a market drop early in retirement, while you’re withdrawing, can do lasting damage.
  2. Tax risk — RMDs and other income can push you into higher brackets and raise Medicare premiums.
  3. Healthcare & extended-care risk — medical and long-term care costs can be significant and unpredictable.
  4. Inflation risk — rising prices slowly erode fixed income over a 25–30 year retirement.
  5. Survivor risk — household income can fall sharply when one spouse passes away.

The good news: each of these can be planned for. Awareness is the first — and most valuable — step.

See where you stand: The Retirement Readiness Scorecard touches on all five in a few minutes.

Have questions about your own situation? Tracy is glad to talk it through with you — clearly and without pressure.

Educational only. Not tax, legal, or investment advice. Services offered only where Tracy is properly licensed.