The Biggest Problems With Retirement (and How to Fix Them)

marc-daner  Registered Financial Advisor, Daner Wealth Management.

  WWS contributor


Retirement is meant for enjoying life and relaxing. But you can only achieve a comfortable retirement if you prepare for it well. Failing to plan brings big problems in your latter years.

Biggest Problems With Retirement (and How to Fix Them)

Retirement is a stage where we typically leave our careers, reap the rewards of our hard work, and reminisce great memories. It is also where we start feeling weak because of old age. It is essential to ensure that you are worry-free when you reach your later years. However, achieving a comfortable retirement takes work.

If you stop working upon retirement, you must ration your pension and savings for daily needs like food, medications, and toiletries. You would also have to pay off debts you may have acquired while working, which can worsen your financial situation later. 

Retirement may seem short since it is only the remainder of your life. However, the average retirement period is 20 years. You would only want to deal with a few problems for this long since you have already worked hard for most of your life. 


Common Retirements Problems You May Experience


Here are some of the most common problems you may experience if you are without a proper retirement planning, and tips on how you can resolve them: 


1. No established healthcare plan

You should spend your retirement years enjoying and relaxing, having worked your entire life. It should bring positive benefits to your mental health. 

However, as your health declines, your medical expenses can scrape off years' worth of savings if you do not have a health care plan.

What you can do: 


Invest in a healthcare plan covering at least 20 years' medical costs. Consider any potential expenses on major medical expenditures, such as hospitalization, surgeries, therapies, and medications. It is always best to prepare excess funds for healthcare. 

As such, start setting your healthcare plan as early as you can. It may be challenging and require enough financial knowledge. You can consult a trustworthy financial advisor to help you with this matter.

2. Insufficient savings

With retirement lasting an average of 20 years, you may still need to spend on many things, such as rent or mortgage, groceries, and medications. For this reason, you need substantial savings to cover your needs. You may compromise your lifestyle if you fail to save for retirement.

For instance, you may have to downsize your home, sell your belongings, or take a job similar to your full working years. These things defy the purpose of your retirement years, which you should spend relaxing and taking jobs where your passion lies.

What you can do:


Calculate your monthly expense to determine how much you should save for retirement. Create a savings account and deposit a portion of your monthly salary religiously.

Be wiser about where you channel your financial resources and ensure that these are worthy investments with valuable returns during retirement.


3. Not having an income stream

Many factors can affect your financial standing during retirement. These factors include regular expenses on necessities, price hikes due to inflation, healthcare costs, and relaxation expenditures.

When you take all these things from your retirement savings, your financial resources will run out faster than you realize.

What you can do:


Getting a job during retirement can help you grow your life savings and cover your wants and needs. The good thing about working during your later years is the liberty of choosing how you generate cash flow.

You can choose a more fulfilling job with lesser demands than your previous full-time jobs. You can also establish a business, which you can pass on to family and friends once you can no longer handle it yourself.

4. Struggling with inflation

Inflation is the rate of price increase in commodities over time. It can affect the number of goods you can afford at a particular time and impact your lifestyle during retirement.

What you can do:


Calculate the estimated cost of living in your retirement years. You can also invest in different income-generating methods to diversify your earnings and reduce inflation's effect.

Additionally, you can downsize your housing maintenance in retirement and invest in real estate to earn passive income.

5. No plans for mental health and relaxation

Most people spend their retirement years enjoying life. They free themselves from financial worries as early as possible to avoid affecting their mental health. They believe that retirement is the best time to focus on their well-being.

With proper retirement planning, you may feel safe with the responsibilities you will be left with in your later years. You may also have a more challenging time adjusting to retirement life. These significant life changes can cause physical, emotional, and mental stress when unaddressed.

What you can do:


Plan out a retirement that focuses on rest, relaxation, rejuvenation, and purpose. You should rest to compensate for the stressful days, sleepless nights, and exhausting work weeks you endured while you were young. 

Since you will have more time in retirement, spend it enjoying little moments you could not do while working full-time. Have fun, reconnect with your family and friends, and explore your purpose in life. Do all the things you have wanted to check off your bucket list.


In Conclusion, Plan Out a Worry-Free Retirement


We can all agree that retirement is meant for living life to the fullest. However, you can only achieve a comfortable retirement if you prepare for it financially and emotionally. As a such, plan for your healthcare needs, save and invest in businesses and assets as early as possible.

As you hustle full-time now, remember that planning for retirement means investing in a quality life for your future self.

Marc Daner is a registered Financial Advisor with Daner Wealth Management. Connect with him on LinkedIn