In his latest column, retirement expert Robert Powell summarized key takeaways from a recent Merrill Lynch Wealth Management webinar that highlighted how the COVID-19 pandemic has accelerated many trends that could affect the way a person plans for and lives in retirement.
Ken Dychtwald, co-founder of consulting firm Age Wave, commented that older Americans are living longer; they survived the pandemic in better shape than younger generations; and many are rethinking how they can lead more productive and active lives once the pandemic ends. Retirees should factor future healthcare costs into their retirement planning, because the average couple spends $440,000 or more in out-of-pocket costs, said Dychtwald, who added that couples should also plan ahead to ensure that when one spouse dies the remaining one has “sufficient resources to go the distance with peace of mind?”
To safeguard against running out of money in retirement, Chris Hyzy, managing director and chief investment officer at Bank of America Corp., advised retirees to take on more risk in their retirement portfolios, instead of relying solely on bonds and other conservative investments. “Move into preferred securities from bonds, or move over into equities,” said Hyzy. Click on the image below to view the full webinar.
Experts Discuss Post-COVID Retirement Trends
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