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Coping with Retirement Uncertainty: 6 Expert Advice and Solutions

Are you dealing with retirement uncertainty? See here how you can overcome it. 

A large number of Americans are feeling discouraged about their level of retirement preparation. And I honestly don’t blame anybody because everything seems more complicated in these hard times, starting with finances.

While you’re probably eager to leave the 9 to 5 behind you and start enjoying the Golden Years as you should, anxiety kicks in and you find yourself facing retirement uncertainty, and a lot of your questions don’t seem to have an answer.

The biggest monster beneath the bed that pre-retirees always worry about is running out of money in retirement. But instead of beating yourself up over this topic, let’s find out together how to overcome this fear and some others and start enjoying each wave of life as it comes.

retirement uncertainty
Photo by Lane V. Erickson from Shutterstock

Fear that Social Security is …shaky

It is no surprise that Social Security is probably the biggest source of retirement uncertainty, and this is because most retirees rely solely on this income. And while this income should be something that’s 100% sure to help you survive during the golden years, one in three non-retirees believes it will always be available for them.

For years, rumors about Social Security becoming “bankrupt” have been circulating, which has contributed to the growing lack of trust. People under 50 are giving in to the negativity.

According to experts, one thing is for sure: As long as employees continue to contribute to Social Security through payroll taxes, the program will continue to provide benefits. However, it is using a cash surplus in its trust funds to make up the shortfall between the benefits it pays out each year and the money it receives.

The Social Security trustees’ most current predictions indicate that by 2034, the excess will run out. That does not imply that Social Security will fail to provide for you, but your benefits may be much reduced. Let’s hope the inflation will be long gone by then!

Fear of inflation

It goes without saying that inflation is one of the biggest reasons for retirement uncertainty. Most products are still more costly than they were a year ago, even though the rate of inflation may be declining from the 40-year peak it reached in the first half of 2022.

Worker concerns about whether their savings would be sufficient to keep up with growing expenses are not unjustified. Because of this, and not only that, people are delaying their retirement dates as much as possible.

At some point last year, there was a survey made on this topic, and a big majority of those between 55 and 65 who have not yet retired, 25%, intend to retire later than they had anticipated. Of those surveyed, 15% expressed uncertainty about their ability to retire altogether.

Should you be worried that inflation might ruin your golden years? Well, inflation is real, no doubt about that, but that doesn’t mean you won’t be able to deal with the circumstances. If your health allows you to continue working, you can delay retirement by a year or two. During this time, you will also be able to save more money and cope with this retirement uncertainty.

Fear that one day you will run out of money

A widespread fear is that one will outlive their money due to rising healthcare expenditures and longer life spans. This may make retirees more frugal with their money, which will keep them from fully appreciating their retirement.

Making a retirement plan might be difficult for many people since they are not as skilled with money. Since I’m not either, I went to a financial advisor for a helping hand. They can assist you in establishing a plan, spreading out your holdings to lower market risk, or adding fixed-income annuities to provide a stable income stream and buffer against fluctuations in the market.

While the fear of running out of money is a retirement uncertainty that gives many people a huge headache, asking for professional help can help you sleep better at night knowing that you will have a well-crafted budget for your golden years to enjoy them as you should.

Fear of health insurance

One of the biggest sources of retirement uncertainty is health insurance. You will need to find a way to acquire health insurance before Medicare kicks in if you choose to retire before you turn 65. Making the switch from employer-sponsored health insurance to Medicare also needs planning.

Medicare is a complex program with a wide range of options and levels of coverage. It’s easy to become overwhelmed and fear that you’re not selecting what’s ideal for you. Ask a friend or family member if you need assistance understanding how things work. You must learn about Medicare to understand its fundamentals, how it operates, and—most importantly—how much it costs.

Retirement can be scary and give you a lot of anxiety, but it can also bring you peace of mind and some quiet that you need the most after working so many years. If you’re in the same boat and you feel like the earth is shaking under your feet, check out this book.

Retirement Planning: Strategic Planning, Investment Insights, and Life Hacks for a Worry-Free Retirement can help you figure out some stuff on your own. It is also super affordable if you have a Kindle, which is just $3.14 on Amazon. The retirement years should be the best years of your life! 

Fear that the kids won’t leave the nest

There is one thing that can put a lot of pressure on the household budget: your kids moving back with you. This happened a lot during the pandemic years, and because people saw it as more affordable, they decided to continue living with their folks.

Well, this is another huge reason for retirement uncertainty for a lot of Americans. What if your children remain unemployed and crawl back to you and ask for financial support? This is out of discussion for many retirees, but others are too shy to discuss this matter, and they make a lot of sacrifices to support their children and also take care of their household bills and other expenses.

One thing is for sure: Don’t sacrifice retirement savings to pay for an adult child’s bills; otherwise, you may have to rely on them for financial assistance as you get older!

retirement uncertainty
Photo by Atomazul from Shutterstock

Going from a fixed income to savings

Do you remember that time in your youth when you were eager to finally retire because working wasn’t exactly that pleasant? Well, now you’re close to having more space and time because you’ll no longer have to commute to a 9-to-5 job. But with this inflation, this is a worrying thought.

Experts advise us to deposit many years’ worth of money into an only cash, risk-free account. In this manner, people may spend their wealth during a weak market and let their investment portfolio grow again. Remaining employed and waiting for the market to improve is an additional choice; however, this may not be doable if you are ill or you’ll get fired meanwhile.

Bottom line:

Retirement is an unknown chapter, and it’s normal to be afraid of it. Excitement may accompany it, but doubt is also present. Recognize your concerns, but don’t allow them to keep you from living the most satisfying retirement possible. Make a list of all the things you are afraid of, and then identify the measures you may take to lessen each worry.

Retirement is approaching soon? You may be interested in reading about the 4 Harsh Realities About Retirement

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