Room for Error in Retirement

Do you have wiggle room in your retirement? Seriously, how much “room for error” do you have in retirement? 

Having the ability to be flexible in your thinking can be important in retirement. But defining room for error as the ability to decrease spending is not ideal.

Living in retirement with “a range of outcomes” is not a safe bet. The risks in retirement are just different than those you face during accumulation.

Sequence of Returns Risk

The real wiggle room from sequence risk, however, is to oversave for retirement. A lot of problems can be fixed by oversaving!

Cognitive Decline

Having family conversations and good estate planning (especially for disability needs) is key to allowing you to meet your slow-go retirement goals and to age in place.

Inflation

Inflation is a sleeping dragon and, perhaps, the most difficult risk for which to build room for error.

Longevity

Longevity is the central theme for wiggle room planning. While there are products intended as longevity insurance, the best idea, again, is to oversave.

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