Accounting For Retirement Income Gaps

Accounting For Retirement Income Gaps

Ensuring Worry-Free Golden Years

Unfortunately, as prices continue to rise, retirement income gaps are more common than ever. A retirement income gap is the different between your designated retirement income and your actual expenses. No matter how hard we try to account for expenses during retirement, there are almost always costs that arise when least expected. We want you to enjoy your golden years without any financial worries, which is why we have gathered a list of retirement gap causes and tips for avoiding this shortfall:

  • It is important to note that unexpected economic shifts and lifespan increases are making it more difficult to accurately calculate exactly how much you will need for retirement. These fluctuations make it harder to anticipate your necessary retirement income.
  • When you take action today against becoming victim to a retirement income gap, you can better protect yourself and your finances. Discuss the possibility of boosting your pre-retirement savings with your financial planner to see if this can account for the potential gap. You can also look into delaying Social Security payments or working an additional few years as a proactive measure.
  • You may want to look into opting for an annuity, as these tools have the ability to provide you with a stable form of lifetime income to cover any essential expenses during retirement.
  • It may be wise for you to invest your discretionary spending funds into a unique asset investment tool such as stocks or mutual funds. This will allow you to account for rising costs so that you can best conquer any unexpected costs that may arise.
  • Most importantly, try to maintain various sources of income so that you can feel confident about your financial stability during retirement.

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