Four Hurdles on the Way to Retirement

What's next after you pay for college educations and weddings for the kids? For most long time wage earners, the answer is a safe and secure retirement. That is easier said than done. You must overcome some hurdles first.

1. Retirement is costly. It is estimated you will need 70-80% of your current income to maintain a similar standard of living in retirement. Social security alone will probably not be enough.

2. You could outlive your assets. Due to medical advances and increased education about healthy living, life expectancies have been on the rise. Currently you can expect to live 20 years in retirement (assuming retire at age 65). Will your assets provide an income stream for that length of time? What happens if you need long term care?

3. Health insurance costs keep escalating. There is no end to the spiraling health care expenses. Consider that you have more health challenges as you age. Medicare alone may not be enough.

4. Inflation can rear its ugly head. Since inflation has been relatively low the last few years, its easy to forget its potential impact. Money won't go as far as it does today.

Retirement planning isn't a luxury; it's a necessity. You can improve the odds of securing a comfortable retirement by saving diligently through your working years. Use tax-advantaged retirement planning vehicles (IRA, Annuities) and protect your assets with long term care insurance.