• Question
  • My wife and I get SS and I get an Air Force Retirement. How can I run out of Money?

    Asked by a 81 year old man from Travelers Rest, SC on 8/8/2012

    My wife and I get SS and I get an Air Force Retirement. How can I run out of Money?

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  • Categories: Military and Veterans Benefits, Pensions and Retirement Benefits

Answers

  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • Congratulations! You may be very very lucky retirees!

    Social Security is guaranteed lifetime income and it sounds like your Air Force retirement is as well.

    Guaranteed lifetime income is income that you are guaranteed to receive for as long as you live -- no matter how long that might be. It is a key element of a secure retirement plan.

    So long as your guaranteed retirement income is equal to or more than your expenses, then you have a very good chance of not running out of money....

    However, there are a few risks that you might face, including:
    --> Medical Expenses: Experts estimate that the average household out of pocket expenditure for medical expenses is somewhere between $200,000 and $400,000. Out of pocket medical expenses include Medicare supplemental coverage, premiums, co pays, prescriptions and more.

    --> Long Term Care: If you or your wife were to require long term care, this can be very expensive. Sometimes it can be covered by your guaranteed income and sometimes it can not -- depending on the cost of the type of care you require. Long Term Care is not covered by any kind of Medicare coverage.

    --> Inflation: Social Security will supposedly adjust for inflation, but the reality is that it does not always keep pace. I am not sure if your Air Force retirement checks adjust for any kind of Cost of Living Adjustment (COLA)

    --> Other unforseen expenses: Retirement savings are always at risk to the unknown. We simply do not know what the future holds and retirees will need to make due with their existing resources in whatever situation they find themselves.

    We hope that the NewRetirement Retirement Calculator was able to illustrate some of these concepts for you and that it provided useful information and guidance.
    http://www.NewRetirement.com


  • Login to rate this answer:   Answered on 8/8/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.