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New Year 2013 Retirement Obstacles

There are a number of obstacles that you may face in planning for your retirement:

Longer Life Expectancies

  • Longer life expectancies increase the risk of retirees outliving at least a portion of their retirement income. Those reaching age 100 are fastest growing population segment in the United States.

Discipline to Save

  • Many people find it difficult to form the habit of “paying themselves first,” by making regular deposits to a savings plan.

Saving to Spend

  • Money is saved for retirement purposes, but then is spent to make purchases.

Income Taxes

  • Income taxes can erode the growth of your retirement savings and as I write this we do not know what the 2013 tax rates will be.


  • Longer life expectancies also increase the risk of inflation eroding the purchasing power of retirement income. For example, if inflation increases at 3.5% a year, it would require over $14,000 in 10 years in order to maintain the original purchasing power of $10,000.

Since Social Security and your company pension plan probably will not provide the income you need for a financially-secure retirement, how can you overcome the obstacles you face in planning for retirement?

For help you may ask questions in the comments or contact me privately here: Tim Barton Chartered Financial Consultant