Boomers are entering retirement in an era marked by rising costs, longer lifespans and economic forces that can quickly erode even well-built nest eggs.<\/p>\n
To better understand the biggest threats facing today\u2019s retirees<\/a> and issues they may be overlooking, financial and elder-care experts weighed in on where boomers are most vulnerable right now<\/a>.<\/p>\n The biggest threat to boomers isn\u2019t a market crash, it\u2019s living longer than their money lasts, according to Linda Jensen, a certified exit planning advisor and founder of the Heart Financial Group<\/a>. With many retirees now facing 25 to 30 or more years of retirement, longevity is \u201cboth a blessing and a financial risk,\u201d Jensen added, and traditional savings models often fall short.<\/p>\n \u201cBoomers will need income for 30 years or more, which means retirement planning must be built for endurance, not just the early years,\u201d she said.<\/p>\n Find Out: How Much the Average Upper-Class Retiree Spends Monthly at Age 69<\/a><\/p>\n Read Next: 5 Clever Ways Retirees Are Earning Up To $1K per Month From Home<\/a><\/p>\n Healthcare is emerging as the \u201csilent budget killer,\u201d Jensen said, and long-term care<\/a> is the most underestimated financial threat of all, able to \u201cwipe out years of savings if it\u2019s not planned for in advance.\u201d<\/p>\n Most Americans over 65 are likely to need long-term care, yet only a tiny fraction are insured in that way, thus boomers face the real possibility of a single care event wiping out decades of savings, according to Evan Farr, an estate planning and elder law attorney at Farr Law Firm<\/a>. \u201cStatistics show that approximately 70% of people over age 65 will need long-term care, yet less than 10% of the population own any type of long-term insurance,\u201d he said.<\/p>\n Boomers must plan now with insurance, Medicaid strategy and realistic cost projections.<\/p>\n While general inflation hurts all retirees, boomers face a second threat few recognize, according to Vince Stanzione, a financial trader and author of \u201cThe Millionaire Dropout<\/a>\u201d \u2014 the declining long-term purchasing power of the U.S. dollar. \u201cSo far this year, the dollar is down around 60% when priced in gold.\u201d<\/p>\n Jensen likened inflation to \u201ctermites\u201d for people on a fixed income, saying, it \u201cquietly eats away purchasing power year after year.\u201d<\/p>\n Even moderate inflation can severely strain a fixed income, but prolonged high inflation or currency decline can erode retirement savings much faster than expected.<\/p>\n If the market drops, boomers don\u2019t have as much time to recover from a downturn<\/a> and are exposed to something called \u201csequence of returns risk,\u201d where losses early in retirement reduce income for life, Jensen shared.<\/p>\n She said that many fall into extremes: taking too much risk chasing returns or becoming overly conservative and falling behind inflation.<\/p>\n Michelle Moore, a retirement income specialist at Moore Family Wealth<\/a>, said, \u201cThe biggest threat to boomers\u2019 retirement savings is uncertainty. This includes market volatility, inflation and longevity.\u201d<\/p>\n Even when boomers save diligently, poor spending habits, rising lifestyle expectations and lingering debt can derail retirement. Jensen pointed out that \u201clifestyle creep doesn\u2019t stop at retirement \u2026 rising everyday costs quietly push spending higher than people ever projected.\u201d<\/p>\n Credit card balances, mortgage payments and unexpected support for adult children drain retirement cash flow fast.<\/p>\n While Social Security is essential for most boomers, claiming it too early<\/a> remains one of the most common and costly mistakes, Jensen warned. Reduced benefits can affect not only the retiree but their spouse for life. It\u2019s a good idea to run scenarios with a qualified advisor, ideally one with specialized Social Security training, to maximize lifetime income and strengthen retirement stability.<\/p>\n With awareness, planning and the right expert guidance, boomers can turn these risks into opportunities to build a more secure and lasting retirement.<\/p>\n More From GOBankingRates<\/p>\n This article originally appeared on GOBankingRates.com<\/a>: We Asked 4 Financial Experts: What Are the Biggest Threats to Boomers\u2019 Retirement Savings?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Boomers are entering retirement in an era marked by rising costs, longer lifespans and economic forces that can…\n","protected":false},"author":2,"featured_media":412076,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[78065,28,119995,147,530,732,1048],"class_list":{"0":"post-412075","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-boomers","9":"tag-business","10":"tag-linda-jensen","11":"tag-personal-finance","12":"tag-personalfinance","13":"tag-retirement-planning","14":"tag-retirement-savings"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/412075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=412075"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/412075\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/412076"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=412075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=412075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=412075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}