Time to Revisit Your Retirement Income Planning

2020 has demonstrated how quickly financial gains can be wiped out; Here’s how to protect your nest egg from the next big economic upheaval

While the end of the year is always a good time to check in with your financial strategies, this year in particular has presented some unique challenges that are sure to affect your retirement planning. 

With record-high deficit spending, an uneasy stock market (to put it mildly), and uncertain times ahead, even the most well-thought-out strategies are due for a bit of a tune up. 

Achieving peace of mind in retirement is all about projecting your long-term income. The best retirement planning requires you to try and predict your monthly income down to the penny, and this isn’t always an easy task. 

Here are a few of the questions that you should be asking yourself:

Do I know what my retirement income will be?

It’s not easy to look ten, twenty, or ever 30 years into the future to try and estimate exactly how much money you will be earning in retirement, whether it’s from a pension, and 401K, or any other type of retirement account. 

But with effective retirement planning, this is an absolute must. Working with a professional advisor can make this process a lot easier. 

Will my income be able to pay for my expenses?

The only way to know whether or not your projected retirement income will be enough is to also project your total expenses. This includes food, housing, insurance, and even unexpected costs like hospital visits, illness treatments, and long-term care. 

Are my income sources protected from a tank in the stock market?

As we witnessed in 2020 (and 2009) a tanked economy can wipe out decades of gains without breaking a sweat. There isn’t much we can do to predict things like COVID-19, but by assuming that we will live through additional financial catastrophes, it is possible to insulate yourself against big crashes. 

Am I making plans for long-term-care?

Even if you’re already on Medicare, it can be hard to imagine that you will ever need to spend time in a long-term care facility. Most of us tend to think, “I’m too healthy to ever end up  in a nursing home.”

The truth is, a whopping 52% of Americans retiring this year will need some form of long-term care. Perhaps that math doesn’t scare you. But consider this: the average cost of a private room in a care facility can be upwards of $300 bucks, and shorter-term rehab stays average 270 days. 

Thats over $80,000 right there, and that’s assuming that you’re only in there for less than a year. 

Should I consider additional protection like a long-term care insurance or a self-funded pension?

Long-term care insurance is an affordable way to cover yourself against the frightening numbers we explored above. Self-funded pensions are another option that can boost your retirement income, particularly for the self-employed individuals who are still working. 

If you’ve calculated both your retirement income and and your retirement expenses, and the numbers just aren’t adding up, you might need some form of supplemental income. Your Benefits Advisor can walk you through these options and more.

Will my spouse and family be okay if something happens to me?

Nobody said retirement planning was fun. One of the worst parts is making plans for worst-case scenarios, such as the death of an income-earner. If something were to happen to you, would your spouse be able to survive on your savings? Or would you need an additional life insurance policy to keep them protected? 

Get a free, in-depth review with our in-house retirement expert

Around the MediGap Advisors offices, Kevin Conroy is something of a legend when it comes to retirement strategizing. He starts by feeling out your current situation, such as the status of your retirement accounts and the shape of your long-term goals. 

After that, Kevin will work with you to  develop a comprehensive strategy to make sure that your retirement dreams are not only achievable, but also protected against the chaotic nature of an unpredictable world.  

But best of all: He does this for free. All you have to do is make the call, or click this link to choose an appointment from his calendar. 

After he’s done his magic, you’ll be entering the holiday with some extra peace of mind, something that has been in short supply for far too long. 

To your health and wealth,

Wiley P. Long, III
President – MediGap Advisors