- Inflation – For most retirees, Social Security is their source of inflation-adjusted income, according to The Society of Actuaries.
- Outliving assets – A 65-year-old American man can expect to live 17 years on average, while a woman the same age can expect to live 20 years.
- Loss of a spouse – A single person requires nearly 80 percent of the income needed by a married couple, according to the Society of Actuaries.
- Long-term care – The cumulative cost of care may amount to $1 million for a couple.
- Health care and medical expenses – Retirees need to be prepared for unexpected health problems, Medicare premiums, and the expenses that Medicare doesn’t cover.
Source: U.S. News and World Report