We all know the traditional goal for retirement: to maintain the same standard of living as before retirement. However, retirement is evolving in so many different ways—not only the lifestyle of the retiree, but the age of the retiree, the economic environment for the retiree, public policy that affects the retiree… you get the point. It simply isn’t enough to say “I plan to retire next year” and then be able to retire and stay retired.

So, what are the risks you need to address in order to retire and stay retired?

#1…Outliving your retirement resources. This has always been a concern for retirees, but now more than ever. Individuals are retiring younger, living longer and getting bored, which means they’re spending more. Just think about it. Imagine you are retiring at 60 and this is the first day of the rest of your life. How long will that be? 30 years? 40 years? A first class stamp cost $0.15 in 1980. Today it is almost 2 times that amount. What will it be 30 years from now? What about a bag of groceries? Healthcare?

What can you do about it? Know where your dollars are going today. The first step to retirement planning we request when working with any client who is planning to retire is creating and maintaining a budget. We can’t help them plan for a the future without knowing where they are today.

#2…Retirement dissatisfaction. Believe it or not, the excitement and fun of relaxation and leisure during retirement can only go on so long.  A lifetime of work creates aspects of our day to day life that we’ve come to enjoy and begin to miss without even realizing it. So many retirees end up frustrated, bored, unenthused and even depressed in retirement. We always ask our clients, “What are you retiring to?”

What can you do about it? Reflect on the things that brought pleasure, engagement, or meaning before you retire and find replacements for when you retire. Visit our on-line learning center at www.kennedy-financial.com and view the article “Will You Flunk Retirement?” under Life and Retirement Planning. This article is filled with activities to help you avoid the retirement dissatisfaction pitfall.

#3…Lack of a solid Medical Plan. At age 65 most retirees are eligible for Medicare, but there are still many costs that are not covered by Medicare. In addition to the premiums, deductibles and co-insurance, eye care, hearing aids, some home health care and nursing home care for longer than 100 days are not covered by Medicare. By the way—that last one could cost you most of your assets.

What can you do about it? Work with your Life Planner to implement and maintain a solid medical plan.

#4…Neglecting silent risks. We are all aware of and watchful of stock market risk, but there are other types of risk that are often silent which can have a severe impact on your retirement. One example of this is inflation risk. Remember the cost of the 1^st Class stamp 30 years ago? Or think about this: in 1970 the cost of a gallon of gas was 36¢. Just because an investment is principle protected, it doesn’t always mean that it will be able to produce a positive return after you take out inflation and taxes.

What can you do about it? Talk with your investment advisor about your current situation, future and goals and risk tolerance. Ask for ideas that can meet your objectives and still provide you the opportunity to outrun inflation and other silent risks.

For most families, you only get once chance to retire and retire successfully. What happens if you mess up? I strongly recommend working with a Life and Retirement Planner to help you identify the risks that are unique to your situation, as well as implement and monitor a plan to help you avoid the risks of retirement.

Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc.