As people are living and working longer, retirement benefits are becoming more important. While many people rely on pensions to provide for them in retirement, not all jobs offer pensions. Governments should provide a basic retirement benefit that helps everyone afford a comfortable retirement. This would be particularly helpful to lower- and middle-income earners, who often have less saved for retirement than those with higher incomes. Providing a basic retirement benefit would also help reduce poverty in old age. In this piece, William Schantz of Mid Atlantic Financial, LLC lists some retirement benefits that all governments should offer to their citizens.
List of Retirement Benefits That Governments Should Offer
All governments should offer a variety of retirement benefits to their citizens, according to William Schantz, in order to ensure a secure and comfortable retirement for all. Here is a list of some of the most important benefits that governments should provide:
1. A Social Security system that provides a guaranteed source of income for retirees.
2. Medicare or Medicaid coverage for retirees who need health insurance.
3. Tax breaks or other financial incentives for retirees who continue to work.
4. Access to affordable housing options, such as seniors’ housing complexes or age-restricted communities.
5. Discounts on transportation, recreation, and other services that are available to seniors.
6. A program of regular check-ups and screenings for retirees to help catch health problems early.
7. Financial support for retirees who are unable to care for themselves.
8. A system of counseling and support for retirees who are experiencing mental health issues.
9. A network of community resources and services that can help seniors stay active and engaged in their retirement years.
10. An annual review of retirement benefits to ensure that they keep pace with the cost of living.
The governments should also work to ensure that all retirees have access to these benefits, says William Schantz, regardless of their income level or employment status. By providing retirement benefits that meet the needs of all citizens, governments can help to make sure that everyone can enjoy a happy and healthy retirement.
Common Financial Problems That Retirees Face
1. Outliving your savings: One of the biggest financial fears for retirees is outliving their savings. This is a real concern given that people are living longer and healthier lives.
2. Inflation: Another financial worry for retirees is inflation. As the cost of living goes up, your retirement income may not be enough to cover your expenses.
3. Health care costs: Retirement can be costly, especially if you have health problems. Medicare does not cover all medical expenses, so retirees need to be prepared to pay for out-of-pocket costs.
4. Long-term care costs: If you need extended care in a nursing home or assisted living facility, the costs can quickly eat away at your retirement savings.
5. Market volatility: The stock market can be a volatile place, and retirees need to be prepared for the possibility of losing money in their investment portfolios.
6. Rising interest rates: If interest rates rise, they can eat into your retirement income if you have fixed-rate investments such as bonds.
7. Sequence of returns risk: This is the risk that you will experience poor investment returns at the beginning of your retirement, which can have a devastating impact on your overall financial health.
8. Longevity risk: This is the risk that you will live longer than expected and outlive your retirement savings.
9. Inadequate retirement income: Many retirees are not able to generate enough income from their retirement savings to cover their living expenses.
10. Taxes: Taxes can take a big bite out of your retirement income, especially if you are in a higher tax bracket.
The Concluding Thoughts
In conclusion, there are many benefits that governments should offer to their retirees. These benefits can help improve the quality of life for retirees and make retirement a more enjoyable time. Governments should consider implementing all or some of these benefits that William Schantz mentions above in order to serve their retired population better.