Retirement Roundup: Health care costs will take a big chunk out of retirement savings

A digest of timely information and insight about finance, investing, and retirement.

Health care costs will take a big chunk out of retirement savings | PlanSponsor
HealthView Services’ 2018 Retirement Healthcare Costs Data Report shows overall in-retirement health care inflation declining to a projected 4.22 percent compared to the 5.47 percent in last year’s Data Report. This change is primarily driven by a slower rate of increase in expected drug costs. The Retirement Healthcare Cost Index reveals the impact of expected health care costs on retirement budgets: A healthy 66-year-old couple retiring today will need 48 percent of their lifetime Social Security benefits to address total lifetime health care expenses, while a 45-year-old couple will need 63 percent.

Five retirement pitfalls you’ll want to avoid | Forbes
Five retirement pitfalls reflect the results of more than 1,000 retiree interviews and observations of retirees defaulting to a retirement lifestyle lacking excitement, positive challenges, contribution in significant ways, personal growth, and, ultimately, fulfillment. Those who understand the circumstances, situations and events they may encounter in retirement have a better chance of avoiding the snags and of feeling fulfilled in the third chapter of their life.

Clueless about what to save for retirement? You’re in good company | Motley Fool
We’re told time and time again about the importance of saving for retirement, especially because Social Security alone won’t be enough to pay the bills. The problem, however, is nailing down just how much money to accumulate. After all, there’s no magic number that guarantees financial security in retirement, and while it stands to reason that you’re better off saving $3 million than $300,000, there’s clearly a pretty sizable gap in between. In fact, 60 percent of Americans say they really have no idea how much to save for retirement, according to data from TD Ameritrade. But some general guidelines could help.

How to sabotage your retirement | Investopedia
According to the Federal Reserve, less than 40 percent of non-retired adults believe their retirement savings are on track. But none of the remaining 60 percent likely set out to sabotage their retirement. Unfortunately, it’s all too easy to make the wrong financial moves when preparing for retirement.

Two ways to defray this retirement risk: How to choose what’s right for you | CNBC
Here’s one retirement risk that you can’t quite save for: The possibility that you’ll need long-term care either at home or at a professional facility. Individuals who are now at retirement’s doorstep can expect to live and plan for another two decades of life. Perhaps the biggest threat looming for these individuals is the possibility that they may require long-term care as they age — and that they’ll be unable to pay for it.

Understanding Social Security for the public sector: The Government Pension Offset | Forbes
Fair or not, those working in the public sector are treated differently than private-sector employees by the Social Security system, primarily through two rules that may reduce their Social Security benefits – the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

Windfall elimination provisionA provision of federal law that may reduce Social Security benefit payments to retirees who receive a pension based on work during which they did not contribute to Social Security. The WEP does not apply to those with 30 or more years of substantial earnings in Social Security.Government pension offsetA provision of federal law that reduces Social Security dependent benefit payments to spouses, widows, and widowers who receive a government pension like PERA.