Retirement: Expectations vs. Reality

In this episode, we examine eight common retirement expectations and contrast them with the realities many retirees face:

1.  Lower Expenses: Many anticipate reduced living costs in retirement, but factors like healthcare, travel, and leisure activities can keep expenses high.

2. Manageable Healthcare Costs: While some believe Medicare will cover all health expenses, out-of-pocket costs for services like dental, vision, and long-term care can be substantial.

3. Reduced Taxes: It’s a common belief that taxes decrease in retirement; however, withdrawals from tax-deferred accounts and other income sources may keep tax liabilities significant.

4. Optimal Social Security Strategy: Many assume they’re maximizing Social Security benefits, yet factors like timing and spousal benefits can greatly influence the amount received.

5. Continuing to Work: Some plan to work part-time during retirement, but health issues or job market challenges can hinder this intention.

6. Reliable Financial Advice: Trusting that all financial advisors have one’s best interests at heart can be misguided; it’s essential to ensure advisors are fiduciaries committed to acting in your favor.

7. Consistent Investment Income: Relying solely on investments for income assumes market stability, yet market volatility can impact returns and financial security.

8. Certainties in Retirement: While some aspects are unpredictable, retirees can anticipate factors like market fluctuations, legislative changes, inflation, and unforeseen expenses, emphasizing the need for flexible planning.

Listen in as we explore these topics to help you better prepare for a retirement that aligns with reality.