Reasons Why Retirees End Up Broke

People can only be happy when expecting retirement if they have thoroughly prepared for it. This means saving up a sizable retirement nest egg that will be the main source of income during the retirement years. Even though some retirees have done their homework and preparations, there are still some retirees who end up going broke when their retirement fund dries up. There are many reasons why this can happen. Here are just some of them.

Relying Only On One Income Source

Having a source of income during retirement helps prolong the fund that retirees have saved up. But a common mistake many of them make is rely solely on one source. Many, for example rely only on Social Security for their income. It may not be enough to provide for what most retirees need. But at the same time, retirees have this fear that someday, the Social Security benefits they receive may eventually be reduced further. They will frequently be withdrawing money from their retirement savings. RetireesĀ  will eventually go broke if this becomes their sole source of income.

Living Beyond The Life Expectancy

Some people yearn for more years in their lives the more they get older. But unfortunately, a long life can also have its set of problems. Some retirees who live beyond the standard life expectancy realize that they have not prepared for such a situation. They eventually outlive the retirement fund that they saved up, putting them in a serious situation of no longer being able to afford daily expenses.

Getting A Serious Health Condition

Health costs present a major headache for many retirees. An unexpected health condition that requires regular treatment can slowly eat up a retirement fund. It can be a reason for some retirees to go broke during their retirement. That is why it is important for would-be retirees to prepare a sizeable amount for future medical expenses and take advantage of every health benefit provided for them through Medicare in order to lessen the impact of costs in case of health ailments.

 

Posted by Ardent Editor on Feb 24 2017 in Retirement 101 Tags: , ,

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