Many people search for how to save for retirement but having a plan of action as you enter that stage of your life is just as important. According to William schantz, it doesn’t matter how much you save for retirement- what matters is knowing how to convert the assets into an income that you can rely on.
Most retirees have no source of income other than their social security and retirement savings. Moreover, it is not necessary that your job covers you with a pension plan; you will have to overcome challenges by yourself.
Biggest Retirement Challenges – William schantz
Here are some of the biggest challenges you may face if you do not prepare for your retirement in advance:
Studies show that males in their mid-50s have a one-third chance of living till the age of 90, while women in their mid-50s have a 50 percent chance of living that long.
This means that you might end up spending as many years in your retirement period as you did when you were working full-time. Keeping this in mind, William schantz wants people to realize that one that the biggest challenges may be generating enough money to meet everyday expenses to last you 30 or more years.
This is especially difficult today because we live in a world where there are very few sources of income available to retirees.
Inflation is the rate at which the prices of products increase every year. Inflation in the US has been significantly increasing, but in 2021, we saw an all-time rise in inflation. While this is bad for everyone, it is significantly worse for retirees because inflation has a direct effect on purchasing power.
For example, if you save $100, what you can buy with that money today will be different than what you can buy 20 years down the line because inflation will cause everything to become more expensive.
William schantz’s research showed that most retirees live on a fixed income, which means that they struggle to keep up with rising costs. This includes healthcare costs, which means that individuals should look for other income sources before they retire.
3. Building a Legacy
Most Americans struggle with leaving a legacy behind for their loved ones, even if they have enough money for themselves to meet their retirement expenses.
This is because of the rising estate taxes- federal estate tax itself can largely affect what you want to leave to your loved ones. Based on the state you live in, erosion can be a huge problem.
William schantz’s Concluding Thoughts
As long as you are aware of the biggest challenges you may face in retirement, you can prepare for them well in advance. This means talking to financial experts and streamlining your retirement income so that even when you are not working a full-time job, you have ample money left to pursue your passions.
William schantz suggests talking to your loved one about some of your retirement plans so that you two can come up with a plan that will promise a comfortable life for you.