Retirement: Not a Destination, A Journey LIMRA's marketFacts Quarterly (07/01) Vol. 20, No. 1 p.66; Jamison, Kent
Retirement planning is a methodical process that requires
being knowledgeable about the options available and making preparations.
When planning, retirees usually consider nursing home costs, and some
even purchase long-term care (LTC) insurance to cover expenses for
illnesses that may arise. Account inflation, asset allocation, and risk
tolerance are often taken into account as well. However, many retirees
make the mistake of not factoring in both the long-term effects of
inflation and their life expectancy. Another area often neglected is
taxes. In short, for retirees, knowing how to plan requires an
objective understanding of their economic outlook and a subjective
understanding of what is important to them. They must be aware of
issues like increasing life expectancy, post-retirement planning, the
benefits of annuitizing, and LTC products.