Even when you’ve saved enough for retirement, making the transition can still bring some uncertainty. Planning for longevity, inflation, health care costs, and spending can help provide peace of mind as you settle into retirement.
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Austin, we see it all the time with our clients as they approach retirement, that there’s a certain level of temporary anxiety, even if they know they’ve saved enough. What are the actual risks we face in retirement?
It’s a great question. I think the biggest risk that everybody’s always thinking about is longevity. And that can manifest itself into a lot of different ways, whether it’s through inflation, health care costs.
But one thing we’re also talking to our clients about is making sure that they’re not invested too conservatively because we want to make sure we’re planning for that 30-year-plus retirement. And then the other thing we want to do is make sure that we remove that hesitancy to spend so they don’t squander those go-go years early on in retirement when they’re still in good health.
And so, the other thing that I found is that it takes time to settle into your new lifestyle and your new comfort zone, which is why I think a detailed financial plan with very good cash flow is going to bring that peace of mind as they glide into retirement.
So, it’s just as important to build and follow a plan in retirement as it is during our clients’ careers.
Absolutely.