Hidden Financial Risks in Retirement Planning
Retirement security faces underappreciated threats beyond market volatility. Supporting adult children financially ranks among the most insidious risks, with 42% of parents sacrificing retirement contributions to assist offspring according to a recent WealthClarity study.
Early retirement market downturns demand strategic flexibility. The 4% withdrawal rule becomes hazardous during bear markets, as seen in 2022 when rigid adherence WOULD have depleted portfolios 18% faster than adaptive strategies.
Annie Garland, CFP at WealthClarity, observes: "Generosity toward family often comes at the expense of compound growth. Every $10,000 diverted from retirement savings at age 60 typically reduces final portfolio value by $21,000 assuming 7% returns."
