Retirement is supposed to be the time in your life when you have the least number of worries. No longer needing to work every day to sustain your standard of living should give you the time and money necessary to enjoy life on your own terms and finally take control of your life completely. But if you are nearing retirement, the unfortunate reality is that retirement is full of many of its own challenges which can be difficult to solve. Here are three of the most common challenges facing people retiring today and how you can overcome them effectively.
Rising Interest Rates
The first major challenge that is facing people retiring today is the rising interest rates from the fed. These interest rate hikes are designed to help hedge against inflation, but the unwanted side effect is causing a short-term contraction in the market. This can often lead to drops in the value of stocks and bonds, which is usually where much of retirement income is sourced for seniors. The best way to protect yourself against rising interest rates is to simply avoid panic selling your assets. The markets always recorrect and adjust, just hang in there and stay patient.
Growing Healthcare Costs
Another major challenge that faces people retiring today is the growing healthcare costs that face seniors and retirees. The truth is that medical costs are crazy high and are only continuing to trend upward. This can be a major concern for seniors who often require more frequent and intense medical care to maintain health. Modifiable health risks add significantly to healthcare costs. One of the best things you can do to cut your healthcare costs is to limit these modifiable risks, like being overweight or smoking. Do your best to control what you can control to keep your health in check.
The final major challenges that are facing retirees today are mobility issues. If you haven’t taken proper care of your physical fitness throughout your life, you may start to notice difficulty accomplishing simple day to day tasks in your old age. The best way to protect against mobility issues which can impact your independence is regular physical exercise. The more you use your muscles, the better chances you have of keeping them for the long haul.
Retiring is supposed to be the first step to a relaxing end of life. But retirement can be full of its own challenges. Be prepared to deal with these three retirement challenges and have a plan for how you will deal with them.
Check out this article on how to fulfill your healthcare needs in retirement!