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This is like getting on a plane with a 70% chance of crashing

This is like getting on a plane with a 70% chance of crashing

If you’re like most Americans, you’ve been preparing for retirement. You’ve saved money. You have an estate plan. Maybe you’re patting yourself on the back because you’re so well prepared.

If this is the way you’ve prepared for retirement, you have a half-ass plan.

Seventy percent of all retirement plans fail.

The facts are startling, but they’re backed by research. Though most of us hope to live out our lives in our own home[1], the reality is that less than 30 percent of us will do so[2]. Sixty-nine percent of us over age 65 will have a health problem that will leave us dependent on others for assistance[3]. Those of us who end up incapacitated will lose our hard-earned assets to uncovered long-term care costs[4] while becoming a burden on loved ones[5].

This is how life turns out for those who plan according to the traditional formula:

Retirement Plan = Nest Egg + Will/Trust + Power of Attorney.

This is like booking a flight knowing that you have a 30% chance of making it to your destination. Would you get on that flight?

You might say no, but if your plan for retirement consists of legal documents and a financial plan, you’re already on the plane. To avoid this disaster, you need a different kind of retirement plan, one that prepares you for the parts of aging that estate plans and nest eggs can’t solve. But don’t ask your financial planner or your lawyer to help. They won’t. That’s why you have to take matters into your own hands. 

 


[1] Von Gunten n.d.

[2] Bailey and Periyakoil n.d.

[3] Johnson, Toohey, and Weiner 2007, 1

[4] Steiner 2015; Dickson 2016; Banerjee, Ph.D. 2015, 16

[5] Nolan 2001