What Risks Will I Face In Retirement? 
Retirement should be about reducing stress . In order to do this we need to evaluate those things that could happen and develop strategies for dealing with them . At a minimum this will mean maintaining proper insurance coverage on your auto and home . It well might mean purchasing life insurance for the specific purpose of creating a legacy for those you love . If you do that you can spend your assets without any thought of conserving them for your heirs . The most pressing risk according to surveys is the risk of living too long . None of us wants to run out of money . The possibility of living a long time in retirement is quite high . Imbedded in this risk is the likelihood of a needing medical care and custodial care . Another risk is the result of the economy . It could go through major shifts and investments might have a period of decline that could jeopardize your retirement . At that point it is unlikely that you would be able to do anything about it as our ability to work diminishes with every passing year . Another risk that we face is that we could lose our spouse . This is inevitable but it could come sooner rather than later and that could have a profound impact on available money and support . Widows are often faced with very tough economic realities . Long term care requirements are the number one reason why a wealthier person would run out of assets in retirement . There are several strategies to address this risk including long term care insurance . There are several things a person can do to increase their income in retirement . One of the most significant things is to carefully select the date when social security and pension benefits start . The social security benefits increase the longer a worker waits up to the age of 70 . This increases the benefit to a widow as well , should the worker die first . People often own a home . The value of a home minus the mortgage is known as home equity . This home equity can be used to derive income . A reverse mortgage can be put in place that will allow a person to remain in their home and yet withdraw loans against the home for income in retirement . The need for tax planning certainly doesnt end at retirement . There are tax-saving decisions available that will expand income . Your assets are not all taxed in the same way and by converting assets to income in a tax wise manner can save a great deal and expand spendable income in retirement . In all strategies there are trade-offs . If you take a reverse mortgage on the home the amount you can leave your children declines . There will be years in which medical expenses will greatly reduce your taxable income . A Roth IRA provides income that isnt subject to tax which could be a benefit to keep your income in a lower income tax rate bracket . One of the things that I think is most important in developing strategies for retirement is to establish decision points . These are dates or times when you and your spouse or perhaps including your children decide on where you will live , who will provide care if necessary , what assets can be gifted and other important decisions . I am getting ready for one of those conferences even as I write this . It is important to make decisions before there is a crisis . A widow told me a few days ago that moving out of her home into a down-sized facility was one of the most difficult tasks she had ever performed . The emotional and physical toll was enormous . She had planned to make the move several years in the future and she is convinced that she would hot have been able to make the decision , let along , and make the move at that later date . Decide now when you will downsize . Decide now who will assist you or when you will begin to get outside help . There are so many decisions and it is always best to make them before it is absolutely necessary . These decisions can have a profound effect on insuring the financial success of your retirement . 