While $1 million is sometimes cited as the ideal number for retirement savings, this assumes a one-size-fits-all approach to retirement planning. Everyone’s retirement goals are unique, and preparing for retirement might not be as simple as saving a specified amount. It’s worth taking a more in-depth look at your finances and future needs to see if you have enough saved for retirement and what retirement costs to factor into your plan.

Longevity Risk

After saving for many years, you will finally start to draw down those savings to fund retirement, and must make them last for the rest of your life. This is difficult considering that we’re living longer than ever and often want to maintain our pre-retirement lifestyle in retirement. However, there are options for protecting against longevity risk. Pension or no pension, develop a plan for creating stable retirement income in the short-term that isn’t tied to the volatile stock market; and growth of income in the long-term where stock market investments may be more essential. Also consider spousal survivor needs: how much income will your spouse lose if you pass away early, and how can you replace that lost income?

Factor in Inflation

Have you factored inflation into your retirement plan? Let’s say you start retirement with a $1 million nest egg. You know what $1 million is worth now, but what about in 20 years? After 20 years with a 2% inflation rate (the Fed’s “target” interest rate), $1,000,000 would have the buying power of only $672,971. (1) Inflation erodes the value of savings and will continue to do so after you retire. The Fed said that “inflation has risen, largely reflecting transitory factors” (2) and seemed unconcerned about the potential for higher inflation and the fact that March consumer prices rose 2.6%. (3)

Potential for Long-Term Care Costs

An average 65-year-old couple retiring today will need an estimated $295,000 to cover their healthcare costs (4), and that doesn’t even include long-term care costs. Between rising healthcare costs and the fact that an estimated 70% of today’s 65-year-olds will need long-term care at some point, overall costs could be much higher. Long-term care costs can be staggering, and Medicare doesn’t typically cover them. In 2021, the median yearly cost for an in-home health aide was $54,912, and the median yearly cost for a private room in a nursing home was $105,850. (5)

We will work with you to create a comprehensive retirement plan that takes all retirement costs into account. Call our office for a free, no obligation financial review to take the first steps towards a retirement plan that’s more than just a number.


  1. Inflation Calculator – Save Enough to Account for Inflation
  2. Federal Reserve Issues FOMC Statement
  3. Consumer Prices Rise More Than Expected, Pushed by 9.1% Jump in Gasoline
  4. How to Plan for Rising Health Care Costs
  5. To What Extent Will Medicare Cover Long-Term Care?


Investment advice is offered through APO Financial Services, LLC (“APO”) 10155 Westmoor Drive, Suite 175, Westminster, Colorado 80021-2627. APO Financial Services is an investment adviser registered with the Securities and Exchange Commission (SEC). Registration with the SEC as an investment adviser should not be construed to imply that the SEC has approved or endorsed qualifications or the services Eric Scott Financial and/or APO Financial Services offers, or that its personnel possess a particular level of skill, expertise or training. Additional information pertaining to APO’s registration status, its business operations, services an fees, and its current written disclosure statement is available on the SECs Investment Adviser public website at https://apofinancial.com/disclosure/.