Retirement planning & financial planning are not popular activities

Allianz Life Insurance Company of North America conducted a survey of 3,000 Americans for a study entitled, “The Gift of Time.”1  In that survey, 72% of the respondents indicated they had no financial advisor although nearly one-half wanted guaranteed lifetime income and almost one-third would like help with finances through the changing stages of life. “A recent study by HSBC shows that…an unlucky 20% are unable to retire ever.”2  If planning were popular, these numbers would be less draconian at the very least.

Planning for health care & long term care is ugly at best

When planning for retirement is embraced, most focus on how much income is needed for housing, vacation, car payments, travel to see the grandchildren, and whether the current level of golf outings and jewelry purchases may be maintained.  Unfortunately, there are two ugly areas of life that demand appropriate funding.  A retiring 65 year old couple can estimate spending $260,000 on health care3 and potentially $82,125 annually on long-term care4!

Making sure the ship doesn’t sink

Sailing into retirement with no plan for these elements will absolutely result in difficult headwinds, if not a financial hurricane.  According to the U.S. Department of Health & Human Services (, 70% of today’s 65 year olds will require some type of long-term care services and 20% will need it for longer than 5 years!  Everyone boarding a cruise ship has a right to expect the captain has planned for rough seas.  Proper planning will help make your family’s journey through retirement more pleasant.

1Demasters, Karen. Fianancial Advisor. June 27, 2016

2Rozen, Miriam. FinancialPlanning. August 15, 2016

3Fischer, Michael S. Think Advisor. August 16, 2016

4Jamieson, John. ModestMoney. August 5, 2015