15 Reasons Why People Run Out of Money in Retirement: Part 1

On this episode of RRS, Dave Hall discusses the reasons why people run out of money in retirement. He emphasizes the importance of having a budget item for a significant gap in health savings accounts and encourages taking action to reduce or eliminate retirement risks. Dave highlights the shift from employer-funded retirement to employee-funded retirement as one of the reasons for the retirement crisis. Also, Dave stresses the importance of planning for a longer retirement period, as life expectancy increases, and not running out of money. He discusses the impact of having children and the significance of sequence of returns during retirement. Additionally, Dave covers the importance of having enough money saved up for retirement and addresses the issue of not running out of money. 

Key Takeaways:

  •  Retirement planning should include budgeting for potential health expenses, such as a significant gap in health savings accounts, which can amount to around $100,000.
  • Taking action to reduce or eliminate retirement risks is crucial to ensure financial stability in retirement. Attendees of the deep dive course on financial risks in retirement have described it as life-changing, providing solutions and new ideas.
  • Social security benefits should be claimed at the right time, as the government underestimates life expectancy, leading to potential loss of additional money.
  • Taxes in retirement are expected to double by 2030 and can significantly impact retirement spending. Consideration of taxes in retirement planning is essential to ensure savings and spending ability.
  • Planning for a longer retirement period, even up to age 100, can help alleviate the fear of running out of money. Taking market fluctuations into account and not withdrawing too much each year are important factors in maintaining financial stability throughout retirement.

Stay tuned for part 2!

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