Retirement planning has taken on many new dimensions that were previously not considered. Longer life spans have created a number of new issues that need to be taken into consideration when planning for retirement.
Lifetime Income Need
There is a lifetime after retirement and the need to be able to provide a steady stream of income that cannot be outlived is essential. With the prospect of paying for retirement needs for as many as 20 years, retirees need to be concerned with maintaining their cost-of-living.
Health Care Needs
Longer life spans can also translate into more health issue. The Federal Government provides a safety net however, it may not provide the coverage needed, especially in chronic illness cases. Planning for long-term care, in the event of a serious disability or chronic illness, is a key element of retirement plannings.
Planning for the transfer of assets at death is a critical element of retirement planning especially if there are survivors who are dependent upon the assets for their financial security. In addition, larger estates may be confronted with settlement costs and sizable death taxes which could force liquidation if the proper planning is not executed.