10 Most Common Retirement Threats – Protect Your Nest Egg

Watch out for these common retirement threats to your nest-egg.

Follow these risk proof retirement tips:

  1. Longevity Risk: Considered by many to be the most dangerous  of all retirement threats as life expectancy continues to increase. To mitigate longevity risk, you want to convert lump-sum retirement assets into guaranteed income streams for life. This retirement threat acts as a multiplier to all the other risks. Longevity risk is the risk of outliving your assets.

  2. Insufficient Lifetime Income: A sustained period of near zero percent interest rates on safe investments and the evolution from government and corporate pensions to the privatization of retirement accounts has left many people without sufficient amounts of reliable income for life. Retirees today must reconsider what liquidity means in retirement.  What percentage of your nest egg should be in lump investments versus guaranteed lifetime income you cannot outlive?  What is the right percentage of each to ensure you don’t run out of gas and run the risk of outliving your assets?

  3. Inflation: With interest rates at historic lows, inflation is a major retirement threat. Learning the secrets about the strategies to manage this “silent” threat is invaluable knowledge.  Like un-managed high blood pressure, inflation causes damage that can go un-noticed for too long.  Periods of low interest rates are often confused for periods of “no inflation”.  Inflation is especially threatening to your nest egg due to limited options to replenish principle.

  4. Incorrect Asset Allocation: The proper asset allocation in retirement is critical. Why do so many retirement aged people say a stock market correction or rising interest rates is keeping them awake at night?   IT DOES NOT HAVE TO. Learn the right allocation strategies for a simpler retirement.

                                If you make one change today, increase the amount of guaranteed income from indexed,                                         income annuities.

  5. Rising Medical Costs: The retirement threat considered by many to be the one capable of immediate damage to a nest egg.  

  1. Loss of Spouse & Dementia– Both married couples and single retirees can expect to deal with the real issue of potential dementia in the aging process. For married couples, the loss of a spouse often compounds these challenges and has proven to be one of the most significant retirement threats, especially when one spouse has primary responsibility for overseeing the retirement plan. Leading economists and retirement scholars agree about the benefits of guaranteed income you cannot outlive.

  2. Investment Scams: Be careful of “too good to be true” investments. I have very good radar for scams. Feel free to contact me for an opinion.

  3. Fees: Fees and other charges are similar to taxes levied against your investments. They are disclosed, easy to measure and they add up. 

    4. Bad Advice: You know it when you see it. I meet with people in or near retirement every day whose number one objective is “no losses”. Yet, they’re retirement assets are invested in stocks and bonds. It never hurts to get another opinion and having a team of professionals with different disciplines is good prevention. Just make sure one of them is a retirement income specialist.

    5. Market Losses: Right up there with longevity risk, market losses can be the most devastating retirement threat. You cannot afford losses in retirement. You don’t have income to replenish them and you don’t have the time needed to overcome them. A fixed income annuity keeps you invested with no losses, EVER.

    This is just a partial list of retirement threats to your nest egg. The key to security in retirement is to make sure you are not vulnerable to any of these threats. With the right strategy, you can eliminate every risk to your nest egg that leads to peace of mind you may not currently enjoy.

    Please call me at 561-869-4500 or email me, Ted Bernstein, about a complementary consultation about your specific needs.


Also published on Medium.

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About Ted Bernstein 44 Articles
Dedicated to helping people create the ultimate retirement security and protection plan to safeguard their families and businesses. I stress guaranteed income solutions, indexed annuities and state of the art wealth preservation strategies. As the innovator of life insurance products without commissions, my recommendations are impartial, objective and always in the best interests of my clients.