As life expectancy increases, so do the financial challenges of retirement. In this insightful episode of the Senior Matters Podcast, host and estate planning attorney Mark E. Wight sits down with fiduciary advisor Scott Summerlin of Starlifter Wealth Management to unpack the new financial realities facing today’s retirees.
The conversation begins with a striking shift in retirement demographics—retirees in the 1970s lived to about 71. A healthy 65-year-old woman can expect to live to 85 or longer. That’s 20+ years of retirement, and without the right planning, inflation and taxes can steadily erode retirement savings.
Scott explores how healthcare and long-term care costs are among the biggest threats to retirement. While Medicare covers many health needs, long-term care requires separate planning. Scott urges listeners to plan at least 10 years due to Medicaid and Medicare look-back periods, especially since healthier individuals have more options in their 60s.
The conversation also addresses how the financial industry has evolved. Long-term care insurance has shifted from expensive, use-it-or-lose-it policies to hybrid options embedded in annuities or life insurance. These changes offer more value and flexibility to today’s retirees.
Scott then tackles market volatility, explaining how a once-manageable 5% withdrawal rate can spike to 8% in a downturn, leading to rapid portfolio depletion. With examples like a $1M nest egg dropping to $600K, Scott illustrates how volatility can directly affect lifestyle—and why retirees need certainty-focused investments such as bonds and annuities.
Listeners will also learn how mainstream financial news is often misled by focusing solely on the stock market. Scott recommends a more balanced strategy that includes fixed-income products and a long-term outlook.
Finally, Scott offers guidance on finding the right financial advisor, suggesting listeners lean on trusted professionals like estate attorneys and CPAs, and always verify credentials through FINRA’s Broker Check.
🎧Listen to Part 1 of the Inflation and Retirement series
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