(FinancialHealth.net) – Having financial security is a goal for many people. We all want the ability to spend as we want when we want, with no repercussions of having little money left for necessities. For those who already have that security in place, it is best to avoid the threats that could get in the way.
For individuals who are still in the planning stages, now is a good time to be proactive about protecting your planned financial future. Here are four threats to your financial security:
1. Diminishing Retirement Savings
The average life expectancy is far higher today than it used to be. You can expect to live until at least 84, with one in four people living past 90. With full retiring age set at nearly 67 for most, this could mean having to stretch your savings for close to 20 years. Your financial security could start to dwindle as the years go on, so saving enough now could ensure you will have sufficient funds to take you through your long life.
2. Long-Term Care Expenses
As people age, they experience a far more likely chance of developing some sort of illness that requires long-term care, Alzheimer’s Disease being the most prevalent. The high expenses related to long-term care could potentially deplete your savings, so consider looking into long-term care insurance as a way to supplement your retirement nest egg.
3. Identity Theft
Older generations are much more likely to become the targets of identity theft. Phone scams are especially targeted toward senior citizens, with the hopes of getting trusting seniors to disclose their personal information, such as social security numbers, credit card accounts or bank information. Avoid these scams by never giving out personal information to anyone over the phone unless you called them or know them personally.
4. Underinsured
Properly insuring your assets can help keep you protected in case of any threatening event. No one can foresee the future; you never know when a natural disaster will strike or a criminal will break into your home. If you are underinsured either of these events could cause you to lose a great deal of the financial security you’ve worked so hard to achieve. Reviewing your insurance needs with your agent annually can ensure that your most valuable belongings are sufficiently covered.
Threats to financial security will always exist. Proper precautions can help you feel more safe and secure about your future.
~Here’s to Your Financial Health!
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