To help people better understand how financial “hits” triggered by health care costs, inflation and taxes can potentially affect their retirement income, Allianz Life launched “Retirement Income Risks,” a three-minute animated video, which can be found here.
The video uses data from the U.S. Consumer Price Index to explain the potential impact of health care costs, inflation and taxes to retirement income, as well as how retirement vehicles like an annuity can help as a potential solution.
“Retirement planning is about more than setting a savings goal and retirement date. It also needs to include a strategy for dealing with the many expenses that tend to increase as we get older,” says Allianz Life Vice President of Consumer Insights Katie Libbe, based in Minneapolis. “In order to ensure their money lasts as long as they do, people need to develop a strategic retirement plan that includes some form of guaranteed retirement income.”
Libbe cites research from the IRI, which shows a decrease in confidence levels among Baby Boomers about being financially prepared for retirement (see “Workers Need Planning Help Through Retirement”). Over the past four years, only about one-third of Baby Boomers feel confident about being financially prepared for retirement. One reason for this trend, she says, may have to do with Boomers feeling vulnerable to factors such as health care costs, inflation and taxes, which chip away at their savings.