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The 2020 Retirement Challenges Part 3 - Longevity and Climate Change

The 2020 Retirement Challenges Part 3 - Longevity and Climate Change

October 21, 2019
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Over my 30+ years in the financial planning field, I have walked with my clients through many retirement challenges. A partial list of events our clients have witnessed and survived include two Persian Gulf wars, a presidential impeachment, the dot.com bubble, 9/11, the subprime mortgage crisis, the Great Recession, the fiscal cliff, the downgrading of the United States credit rating by Standard & Poor's and a significant rise of political drama and partisanship over the last several years.
 
Each time, the media has screamed that the end of the world was coming. However, patience, perseverance and a belief in free markets and innovation has allowed people to continue to achieve their goals and lead lives of meaning and purpose. The 2019 Global Retirement Index released in September by Natixis Investment Managers, cites new issues causing concern for people seeking to maintain standard of living throughout their retirement years.
 
Not surprisingly, life expectancies and healthcare costs are continuing to put a strain on retiree's financial resources. We continue to see significant advances in technology, biomedical engineering and healthcare advancements that allow us to lead both longer and healthier lives. However, these new technologies come at a significant cost.  As we have seen in Washington DC, they continue to battle over both health insurance costs and funding, as well as the cost of prescription drugs and the profitability of pharmaceutical companies.
 
What was surprising to see, but probably should not have been, is that climate sensitive events such as wildfires, extreme heat and hurricanes have played an outsized role in this dynamic leading to significantly higher health related costs. I have witnessed firsthand over the last few years as Hurricanes Dorian, Matthew, Irma and Maria have forced a number of my clients in Florida and the Carolinas were forced to temporarily relocate. The cost and stress of this for people living on a fixed income in their retirement years can be a struggle.
 
As you can see, there are a whole host of issues that need to be thought through as you plan for a successful transition from work life to retirement life. These issues need to be addressed in your personal financial plan, based on your family's unique and individual goals and objectives.  We at Impel Wealth Management look forward to helping you address these issues and tailor a plan to allow you and your family to keep "Moving Life Forward".