A Case Study In Retirement Planning Woes

A Case Study In Retirement Planning Woes

September 19, 2022
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Here at Tremblay Financial Services, we help our clients focus on their biggest financial concerns. We realize that for most folks at or near retirement, there are 3 primary worries.

  1. Will I outlive my retirement savings?
  2. Will I be able to cover the costs of healthcare in retirement?
  3. Will I be able to maintain my independence, lifestyle, and legacy?

Just one of these scenarios could make retirement a curse instead of a blessing. But what could it mean if someone was suffering from all 3 of these financial ailments?

As it turns out, I just heard an unfortunate story about a woman who is going through that exact kind of a nightmare scenario. I won’t reveal her name in this article, but I will share her story. Let’s look at those 3 concerns again and how they’re affecting the subject of a very real case study.

Will I Outlive My Retirement Savings?

Let’s call our subject “Pam.” Pam recently retired. The only retirement “plan” she had in place was her social security earnings. Pam isn’t alone—a large portion of the Baby Boomer demographic is relying on the government to help them during retirement.

In Pam’s case, that “help” comes to about $1,200 per month.

Needless to say, that’s not nearly enough to maintain Pam’s house payment, let alone utilities, groceries, or any other day-to-day expenses.

In short, Pam was “outliving” her retirement savings from the moment she retired. In an effort to get the most out of her $1,200/month government help, she moved into a house with 3 other women who she’d never met.

Will I Be Able To Cover The Cost Of Healthcare In Retirement?

After housing and transportation costs, healthcare is usually one of the largest expenses during retirement. Just how large depends on many factors. However, according to estimates, the average person who retires at age 65 will need approximately $157,000 saved to cover healthcare expenses in retirement.

Even with Pam’s Medicare coverage, it’s not hard to see that $1,200 per month isn’t going to go very far in covering medical bills. That’s especially true if Pam happens to get sick or injured and it’s of the more serious variety.

In other words, Pam certainly has a good reason to be worried about covering the costs of healthcare in retirement.


Will I Be Able To Maintain My Independence, Lifestyle, And Legacy?

Pam had gone from living in her own home to her own bedroom in someone else’s home. On top of that, she was sharing a bathroom with 3 strangers. Unsurprisingly, Pam only rented her room for a short time before the situation became too much and she moved out.

She moved in with her daughter.

It’s certainly not a rare occurrence to hear about an adult child living with their parents because of some kind of hardship. Sadly, it’s not exactly rare anymore to hear about senior parents living with their adult children, as is the case with Pam.

If that doesn’t qualify as a loss of lifestyle, legacy, and certainly independence, I don’t know what does.

As I’ve already mentioned, Pam’s story is actually quite common. So, what can you do to avoid some of these retirement pitfalls?

It starts with taking an honest look at your current wealth blueprint and what you can be doing to improve your retirement plans. We’d love to help you with that and there are a couple of ways to make it happen. If you’re looking for a one-on-one conversation, book a COMPLIMENTARY session with us here.

Or, if you’d feel more comfortable in a more social setting, join us at one of our upcoming seminars for a complimentary dinner and important regarding several current issues that could potentially be affecting your retirement plans.

Regardless of which route you decide to take, you’ll come away with a solid grasp on where your current retirement plan is at and what adjustments you can make to reach your goals. In addition, you’ll know what you can do to weather economic issues like inflation, market volatility, or, potentially, another recession.