If you are on the cusp of retirement, the last thing you want is a surprise that might suddenly crack your nest egg.
Yet, the reality is that unhappy events and changes can make your financial life more difficult right as you are about to retire.
Americans who are inching closer to retirement said the following are the financial threats that keep them on edge as their golden years approach.
Pre-retirees who said this is an immediate challenge to their retirement portfolio: 23%
Taxes are a threat to everyone’s finances, including pre-retirees. It’s difficult to save when a healthy chunk of your paycheck goes to the government.
However, there is some good news on this front. A number of states have lowered their taxes this year.
3. Market volatility
Pre-retirees who said this is an immediate challenge to their retirement portfolio: 36%
Last year was one of the worst ever for the stock market. This year has been much better. However, today’s pre-retirees are getting a little seasick as the market crests and falls.
Pre-retirees who said this is an immediate challenge to their retirement portfolio: 46%
Legendary investor Peter Lynch recently said this about experts’ forecasts of an economic downturn later this year:
“If this is a recession, it’s probably the most predicted one ever.”
The downturn we are all waiting on has yet to materialize. But today’s pre-retirees still remain spooked about what a recession might do to their finances.
Pre-retirees who said this is an immediate challenge to their retirement portfolio: 60%
Nobody can say for sure whether a recession is on the way. On the other hand, inflation already is here — and has hung around much longer than any of us would like.
Few things can devastate a retiree’s finances more than inflation. If rising prices worry you, check out “6 Genius Hacks to Beat Inflation.”