We may retire earlier than we think we will. Some of us envision leaving the workforce at “full” retirement age (66 or 67) so that we can receive “full” monthly Social Security benefits rather than slightly reduced monthly payments. Will that happen? It might not, according to data released this spring by the respected Employee Benefit Research Institute.

In EBRI’s most recent Retirement Confidence Survey, 21% of the respondents thought they would retire at age 65. Another 26% expected to retire at age 70 or later.

These expectations may not correspond with reality. In surveying current retirees, EBRI found that only 6% had worked into their seventies. Only 9% had retired at age 65. Sixty-five percent of the respondents had left work before age 65, up from 61% in EBRI’s 2010 survey.

We may see retirement as an extension of the present rather than the future. This is only natural, as we live in the present – but the present will not go on forever. Things change, and the costs we have to shoulder five or ten years from now may be greater than the expenses we face at the start of retirement. As many of us will likely be retired for 20 or 30 years, it becomes essential to take a long-term view of the retirement experience – which is why retirees may want to consider growth investing and long term care coverage.

Beyond that basic question, we need to think about insurance from a couple of other angles. Will we need long term care coverage? It seems to get more expensive each year, but as medicine and health care continue to advance and evolve, the possibility of a gradual rather than sudden death may increase. The wealthy may have the assets to contend with long term care costs, but the middle class rarely does. In Genworth’s 2015 Cost of Care Survey, the median annual cost for a semi-private room in a nursing home is $80,300. In California, it is $89,396; in Florida, $87,600.

Disability insurance and long term care coverage may prove more essential to retirement planning than many of us realize.

Age may catch up to us sooner rather than later. Generationally speaking, are we healthier than our parents and grandparents were? Anecdotally, it would seem so: we see people running 10Ks in their eighties, climbing mountains in their seventies, and so forth. Then again, we have diabetes and obesity plaguing American health.

We may be alone sooner than we assume. Many couples retire with a reasonable assumption that they will be together for some time – but something may happen to leave one spouse alone. As anyone who has ever lived alone realizes, a single person does not simply live on 50% of the income of a couple. Keeping up a house – or even a condo – could be arduous for an eighty-year-old man or woman. Driving is a concern. All this means that we may need someone or some group of people to care for us when our spouse is gone. Is that kind of support currently available? Could it be available twenty years from now? If not, what will take its place?

These are some of the blindspots that can surprise us in retirement. They may quickly affect our money and our quality of life. If we age with an awareness of them and recognize them in our retirement and estate planning, then we may be betterprepared when or if they emerge.

“I wish I had known.” “Why didn’t someone tell me?” “This is news to me.

How many of us have uttered at least one of those phrases in the last few months? How about over the last few years? We want to be informed. We are smart, independent, empowered women who are ready to take charge of their future. But how, exactly, do we do that? How do we get informed?

The easiest way to start is for every woman to ask herself some questions.  

1. When thinking about your future, what keeps you up at night?
   1. My family, kids or grandkids future
   2. Did my husband put enough money away for us?
   3. How is my portfolio?
   4. Has my 401(k) done well and will it last through retirement?

No matter what it is that makes you worry about finances, there are resources available to strengthen your ability to make the tough decisions.  The key is to access those resources and make decisions about those financial matters that are unsettled.  Ignoring the nagging questions won’t make them go away!

2. How involved would you like to be with your household finances and financial plan?
   1. I’d like to have a better understanding
   2. I’m fine with things the way they are
   3. I’d like to be able to collaborate with a financial professional to make some of my decisions.
   4. I’d like to be able to have some of my decisions made for me.

I don’t think many of us are truly “fine with the way things are” especially if we have not armed ourselves with the right knowledge to make sound judgements on our financial future. Whether we are an independent thinker, or someone who likes to collaborate, making decisions in a vacuum is a sure recipe for an unplanned financial future. And that ignorance brings fear and insecurity.

For even more guidance on how to Empower Yourself Financially attend this free seminar – November 16^th – Parkside Lodge, Buffalo. Register: https://empoweringfinancially.eventbrite.com/

We looked at her portfolio – she’s not the best I’ve seen at savings, but she’s done rather decently for herself.  She still has one mortgage – but that will be paid off within the next six years.  She still has kids to put through college – and she needs to consider long term care coverage. Her question, as with most of us, was “When can I safely retire?”

My most important advice to her – wait to file for Social Security. Why? Her benefits will double if she waits and files at age 70 vs. age 62.

If she still wants to retire before age 70 – we can make that happen. We can draw more from her investments and savings to offset what Social Security would have provided. Then, when Social Security benefits come in – she can draw less from her savings. It’s all a balancing act.

Her questions then revolved around how long her savings and investments would last. Here’s a good rule of thumb to follow when considering drawing from your investments to fund your retirement. This rough calculation is based on a balanced portfolio of stocks, bonds and cash, and assumes the withdrawal percentage is based on your portfolio’s starting balance:

• Withdraw 3% per year = 50+ years funding source
• Withdraw 4% = 33 year funding source
• Withdraw 5% = 20 year funding source
• Withdraw 8% = 12 year funding source
• Withdraw 10% = 10 year funding source

All in all, after sitting and calculating and probably most importantly – planning for what her financial needs will be in retirement that will provide her with the lifestyle she has worked so hard to retain – she is waiting until she is 70!

Now she has a plan. Do you?