Soaring inflation has skyrocketed prices for everything from basic commodities to consumer goods, presenting a challenging future for pre-retirees hoping to maintain the value of their assets and factor in money for long-term care and other health care needs.
According to the recent “Risks and Process of Retirement Survey” report, issued by the Society of Actuaries, inflation now ranks as the boomers’ top retirement concern.
And as life expectancies increase – 30 percent of all women and almost 20 percent of men currently aged 65 will likely live to 90 and beyond – adequately planning for many years of income is a tremendous challenge.
Those surveyed also voiced their concerns over the ability to afford long-term care and the impact inflation will have on the cost of basic health care (an over-65 couple not covered by Medicare could face more than a million dollars in bills in case of a long-term catastrophic illness).
The SOA’s report suggests that advisors address these issues with their clients by focusing on careful planning, as soon as possible. This includes investment strategies what will produce income, including joint and survivor annuities and life insurance, as well as long term care insurance.