Retirement can be stressful, especially if you aren’t sure you’re ready. A growing list of factors – from health concerns to market risk – are threatening retirement strategies across the board. As our population gets older, more and more people are lying awake at night wondering “ Do I have enough to retire? ” Here are some risk factors to consider and tips to help you make it to the finish line:

1. Longevity. Americans are living longer than ever before. By 2060, the number of 100-year-olds is expected to reach 690,000 – a 9x increase over the last 50 years. Living longer means spending more, especially against the rising cost of inflation. Which brings us to …

2. Inflation. The cost of living is increasing. According to the U.S. Bureau of Labor Statistics, food prices alone are over 50 percent higher in 2019 compared to 2000. Our economy averages about three percent inflation over time. This effect means that our lifestyle needs can double over a 20-year period, even spending the same money we always have.

3. Health Care. Most people aren’t budgeting for rising health care costs, but they should be. According to a recent study by Fidelity, a 65-year-old couple would need approximately $220k to cover routine medical costs throughout retirement.

4. Market Risk. Volatility and fickle investing often leaves many investors breaking even over time once inflation and taxes are figured in. This, coupled with excessive withdrawals, can leave many who thought they had prepared well looking for answers later in life.

Fortunately, there are some strategies you can employ to help keep you on course, even if you got a late start saving for retirement.

1. Use Bucket Strategy. Parking your money in products (aka “buckets”) designed for different purposes – some for immediate access to cash, others for predictable income, some for growth to combat inflation – can help see you through to the long term. A professional financial advisor is key here.

2. Control Your Expenses . Ideally, predictable income (e.g. social security, etc.) will be enough to cover necessary expenses (food, housing, etc.). Even if you got a late start in planning, you can still anticipate your major expenses later in life. Use smart strategies to plan for assisted living or nursing care in the event of incapacity or disability.

3. Use a Team Approach. Putting trusted family or friends in place to manage things in the event of an injury or illness can help steward your resources for the long term. Consider financial and medical powers of attorney to assemble your planning team.

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