The New Retirement: 3 Things to Think About Now

If you think that your retirement will look like your retired parents or grandparents, think again. Here are three things you should consider:

1. The Bank of Mom and Dad will not always open. There are two sides to this. If you're supporting your adult children, you are not alone. A study by BMO Wealth Institute, 81% of parents say they have provided their adult children with financial support. However you want to assess whether it is possible to maintain in the long term. Ask yourself: Does my adult child help (buy a house, pay for holidays, the transition to a new job ...) to my own financial future in danger?

If you answer "No, it will not affect my financial well-being," then it is OK to continue your support as long as you have the assets to back it up and your financial situation will deteriorate in the future. But if you realize that your children continue supporting means financial sacrifices from you, and lowering your own standard of living, then you need to have a frank conversation with them. I would also suggest that financially support your long-term adult children sends the message that you do not really trust them.

Now, the other side of it. If you are on the receiving end of money from your parents, just know that the escalating costs of retired health care, market volatility and other factors, can stop the largesse of your parents, or potentially erase any legacy they would like to pass along, if you or they like it or not. Less than half of respondents in the BMO survey said they would sacrifice their own financial well-being to financially support their children. Bottom line: Based on your parents are not a solid financial plan.

2. the costs of health care will be an important factor in retirement. This year, premiums for health insurance have increased significantly, while the social security benefits declined for those making more than one individual, although limited, amount of money. I found that most people are not planned for the rapidly escalating costs of medical care in retirement. future medical expenses of a person will be the great unknown. But here's a number that can help you put things into perspective. retirement health care cost estimates Fidelity shows that a couple, both aged 65 years and retired this year, can now expect to spend about $ 245,000 on health care throughout retirement . Are you ready for this?

3. You may or may not need life insurance. If you have enough assets, and do not try to replace them if you or your spouse or partner were to die, you may not need as much life insurance you once had. But when looking at the direction of the economy, you have to ask yourself: "If anything happens to me, my spouse or partner to change their lifestyle because of insufficient assets" If so, keeping your insurance? -Life can make sense Think of it this way. with the assurance of life, it puts you in the position to "be the bank" instead of "having to go to the bank" when the need money arises.

The bottom line is that you approach retirement, you need to look to the future with clear eyes, considering all the "if." Next, make sure you sit down with an advisor or agent that can help mitigate these what ifs with the type and the appropriate amount of insurance and planning. If you do not have an agent or adviser, you can use our Agent Locator here.