A crucial point of attention for many people can be found in whether or not they will be able to protect their retirement savings in an unstable economy. Having dealt with the recession for the past few years and feeling uncertain about the security of retirement funds, many individuals are wondering if there’s any way for them to be able to maintain their retirement savings without having to tap into it on a regular basis in order to afford some of the common expenses associated with life. This issue is particularly relevant to seniors because more often than not, these days they are being forced to use some of their retirement savings in order to pay for their medical care, their prescriptions, and their overall residence. While these may seem like lesser expenses that wouldn’t take a lot out of a savings, over a period of time, the loss is very substantial.
For some people, the option of ‘budgeting’ just isn’t a reasonable enough venture as a means to ensure that their retirement savings will continue to last. The expenses and costs of living are always growing and it’s very frustrating for seniors who had already planned to be living independently on their own or retired to a community where they would no longer have to deal with the concerns about how they would pay for their daily needs. In the same sense, seniors don’t want to deal with the issue of having to return to the workforce, because they are at a very demanding point of their lives physically and mentally, and likewise, it’s very challenging for them to be able to get employment when put against other prospective employees of a lesser age and fresher skills. So in this sense, protecting a retirement savings isn’t something that can be inherently handled by saving money or returning to work.
Younger people often worry that the money they are saving in their 401k is going to be lost in the circumstance that the economy has a final crash or that some situation happens where their company of employment completely goes bankrupt and is unable to make good on the promises of the money that they have been claiming to provide throughout the years. Some people would argue that it’s best only to directly handle your 401k on your own and that it’s even more ideal to put your retirement savings into multiple accounts that you generally won’t be accessing – but even this can be questionable. It’s not a matter of if the economy will crash, but more of the issue that inflation is occurring everywhere and people are struggling to make ends meet. Talking with financial advisors can be helpful to an extent, but at the same time – there’s only so much anyone can do to protect their retirement savings if they are ultimately being forced to use it in order to pay for bills and the other necessities of life, such as medical care.