1. Inflation Risk: Inflation is the increase in the cost of goods and services over time, and it can erode the purchasing power of retirees' savings. This means that retirees may need to withdraw more money from their retirement accounts to maintain their standard of living, which can be a challenge if their savings are insufficient.
2. Healthcare Costs: Healthcare costs can be a significant expense in retirement, especially as people age and require more medical attention. Retirees may need to pay for medical treatments, long-term care, or prescription drugs, which can be costly and not fully covered by Medicare or other insurance plans.
3. Market Volatility: Market volatility refers to the fluctuations in the stock and bond markets, which can impact the value of retirees' investments. If retirees invest a significant portion of their savings in the stock market, a market downturn could lead to substantial losses...
