{"id":195798,"date":"2025-12-22T03:51:12","date_gmt":"2025-12-22T03:51:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/195798\/"},"modified":"2025-12-22T03:51:12","modified_gmt":"2025-12-22T03:51:12","slug":"2-retirement-risks-affluent-americans-often-overlook","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/195798\/","title":{"rendered":"2 Retirement Risks Affluent Americans Often Overlook"},"content":{"rendered":"\n

Many wealthy Americans feel confident about retirement<\/a> \u2014 but confidence can be costly. A recent Prudential survey<\/a> found that while 89% of mass affluent Americans believe they\u2019ll be able to cover essential expenses in retirement, most overlook two major risks that could derail their plans: inflation and healthcare costs.<\/p>\n

Find Out: I Retired a Millionaire: The Best $20,000 I Ever Spent Preparing for Retirement<\/a><\/p>\n

Read Next: 5 Clever Ways Retirees Are Earning Up To $1K Per Month From Home<\/a><\/p>\n

Here\u2019s why even affluent Americans can\u2019t ignore these risks when retirement planning<\/a>.<\/p>\n

The survey found that many mass affluent couples aren\u2019t factoring inflation into their retirement strategies:<\/p>\n

Only 53% of those who discussed retirement with a partner considered inflation.<\/p>\n

Among those who haven\u2019t had the conversation, that number drops to 45%.<\/p>\n

\u201cIt\u2019s a good practice for everyone to factor inflation into their holistic financial planning, including for retirement,\u201d said Chris Leckenby, a financial planner at Prudential. \u201cIf we look back only five years, $100,000 in annual expenses in 2020 would equate to almost $125,000 in expenses in 2025.\u201d<\/p>\n

Failing to account for inflation can deplete assets much faster than expected. Leckenby recommended running multiple scenarios with a financial planner to stress-test your plan<\/a>.<\/p>\n

\u201cWith 20-year average inflation at 2.2% and five-year at 2.7%, we can easily view with clients how different rates impact overall assets long term,\u201d he said. \u201cIf we have high inflation for a year or two outside of the normal average, combined with down market years while you are taking distributions from retirement accounts, this will impact financial plans much quicker than a typical straight-line cash flow projection.\u201d<\/p>\n

It\u2019s important to look at the various situations and have the correct asset allocation, Leckenby said.<\/p>\n

Discover More: 64% of Americans Aren\u2019t Prepared For Retirement \u2014 and 48% Don\u2019t Care<\/a><\/p>\n

Healthcare is another major blind spot:<\/p>\n

\u201cWith the population living longer, it\u2019s a critical item as healthcare costs accumulate with older age,\u201d Leckenby said.<\/p>\n

He recommended factoring in an additional $600 per month to cover healthcare in retirement \u2014 but warned that long-term care can be far more expensive.<\/p>\n

\u201cAn additional $600 each month is not so bad \u2014 it is the $10,000 per month that many retirees do not account for,\u201d Leckenby said. \u201cThat\u2019s your very typical cost of a nursing home room if long-term care is needed. If that event happens in retirement, assets get depleted very quickly unless we plan for it through long-term care policies, hybrid life insurance and annuity options, or self-funding.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Many wealthy Americans feel confident about retirement \u2014 but confidence can be costly. A recent Prudential survey found…\n","protected":false},"author":2,"featured_media":195799,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[121152,138,121153,246,40565,1943,121154,111,139,69,244,245,294,2532,4657],"class_list":{"0":"post-195798","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-affluent-americans","9":"tag-business","10":"tag-chris-leckenby","11":"tag-finance","12":"tag-healthcare-costs","13":"tag-inflation","14":"tag-mass-affluent","15":"tag-new-zealand","16":"tag-newzealand","17":"tag-nz","18":"tag-personal-finance","19":"tag-personalfinance","20":"tag-retirement","21":"tag-retirement-planning","22":"tag-retirement-savings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/195798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=195798"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/195798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/195799"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=195798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=195798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=195798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}