- Long-term care expenses – If you haven’t planned for a sudden medical situation that might have led to needing long-term care, your retirement savings will be gone pretty fast. That’s mainly because long-term costs are extremely expensive, and they have only increased over the years. In order to avoid being crippled by a sudden situation like this, try considering long-term care insurance.
- Being a member of the Sandwich generation – Members of the Sandwich generation are good samaritans: they care for both their adult children and their aging parents. Instead of planning for a well-deserved holiday in Europe or other larger expenses, your resources go to the older and younger generations. The best thing you can do is to learn how to protect your assets the minute you’ve stopped working.
- Unplanned major expenses – When you’re saving up, you should always consider unexpected expenses, like roof repairs or new cars. But remember that on fixed incomes, it will be ten times harder to qualify for a loan to cover all the costs, and the loan payments could possibly blow your budget.
- Defined contribution retirement plan as a veteran – According to Doug Nordman, a former member of the U.S. Navy’s submarine force and military financial expert, many soon-to-be-veterans assume that they are completely covered in retirement. Truth is, more often than not, they end up with a bigger burden. Recently, the Department of Defense reduced its retirement expenses “by at least 10 %.”
- A defined contribution retirement plan in the private sector – But military members aren’t the only ones to suffer when it comes to retirement savings. In the last years, workers have had a harder time saving for retirement with their defined contribution plans, like 401(k). If they don’t manage their 401(k) accounts well, seniors might end up with no money left.
