Today I wanted to quickly review an article from Forbes last week. Their research uncovered seven retirement gaps people often overlook in their retirement planning. I wanted to take the opportunity to highlight those seven and how we help cover those gaps with our Retirement Planning Specialist system.
1. Disability Coverage – the article discusses a lack of disability coverage leading to people to dip into their savings account prematurely. Their suggestion is to maintain enough coverage to prevent the need to dip into your savings early if you become disabled.
Our product the FreedomFlex has an optional feature includes disability income benefit. This can be used to protect the client’s savings in the event they become disabled.
2. Long Term Planning – the article states that most do not plan, and for those that do they only plan for short term. They suggest planning to manage your retirement assets over a long period of time during retirement.
Our Retirement Income Analysis Software takes this into account when predicting the amount needed for retirement. Its default setting is to take life expectancy and add 6 years, which is the minimum most experts will suggest planning for.
3. Early Retirement – in this gap, the article suggests many people are forced to retire earlier than they planned. Their solution is to have a contingency plan. They do not give you one just suggest that you develop one.
The FreedomFlex allows you unlimited options and access to your money so you can create a contingency plan that works for you.
4. Death of a Spouse – according to the article less than 1/3 of all couples have planned for the loss of a spouse. It will still cost one spouse 3/4 of what it costs two to retire, and social security benefits fall even more. Their solutions range from financial to non financial suggestions.
TheFreedomFlex includes basic life insurance and you can cover both spouses. This can help with the financial risk of losing a spouse and the income.
5. Change in Mental and Physical Capacity – the article discusses the unexpected changes here that many retirees were not ready for. Their solution is to make sure you have a support system ready.
Our system does not address any of this specifically. However, once we get people involved and thinking about their retirement they are more likely to consider other gaps besides just the financial ones.
6. Working During Retirement – while many people think they will supplement their retirement income reality is only 2 in 10 actually do so. The article suggests being realistic about how to make that happen.
By diagnosing what you really need using the Retirement Income Analysis Software, and utilizing the flexibility of the FreedomFlex, you can minimize this potential gap by accumulating enough money to completely support your retirement.
7. Long-Term Care – Medicare does not cover long term care and many people do not know that. The solution is to make sure you have coverage and or accumulate significantly more assets.
The FreedomFlex does not include any long term care coverage, but it does allow you to access both guaranteed and high growth rates that allows you the best opportunity to accumulate enough assets.