“The reality is that it may take months to find a job, and when and if seniors are rehired, they are employed at half of their previous earnings so they end up exhausting savings anyway,” said Alwin.
About 28 percent of older Americans cited increased cost of living as their top financial concern followed by 24 percent who chose unexpected medical expenses
“No matter what the market does, my clients who are in denial about the onset of dementia will have a steady stream of income of at least 4 percent, even if market forces cause their portfolios to drop to zero,” said Kimberly Foss, a financial advisor in Roseville, California.
To guard against large market losses that can eat into retirement income, Foss employs a product called RetireOne from Aria Retirement Solutions, which ensures a client’s investment portfolio the way that health insurance covers a major illness.
Foss also assists her aging clients with planning for health-care expenses by helping them understand MediGap policies. Some 62 percent of professionals are not confident at all that older adults can afford these costs compared to 43 percent of older Americans who say they are very confident they will be able to afford healthcare costs as they age. In fact, retirees often wait too long to secure or afford long term care insurance.
“I direct these clients to alternate long-term-care protection strategies, such as a long-term-care annuity, which has no medical underwriting,” said Michael Tove, financial advisor, president and founder with AIN Services in Cary, N.C.