​Risk management is at the core of any investment strategy. However, it takes on heightened importance in retirement. Without the benefit of a regular paycheck, it could be difficult to bounce back from market downturns or costly emergencies. One sizable setback could impact your income and derail your retirement.
 
One of the biggest risks all retirees face is the threat of sizable health care costs. Fidelity estimates that the average married couple will spend $275,000 on out-of-pocket health care expenses in retirement.1 That figure doesn’t even include long-term care, which can cost thousands of dollars per month and may be needed for several years.
 
Fortunately, you can take steps today to reduce your risk exposure and protect your retirement. Below are three actions to consider. If you haven’t yet developed your retirement risk management strategy, now may be the time to do so.

​Getting ready to retire? If so, you have some big decisions ahead of you, such as when to file for Social Security and how to manage your investment strategy. Perhaps one of your biggest decisions is when to enroll in Medicare and what type of coverage to select.
 
In its original form, Medicare only covered hospitalizations and limited forms of skilled nursing. Over the years, however, other services and types of coverage have been introduced. Today, Medicare offers a broad menu of insurance options.
 
You may find it challenging to choose the coverage that’s right for you. After all, you can’t predict your future health needs. How can you be sure which coverage will meet your needs but also not bust your budget?

​One of the most enjoyable aspects of retirement planning is thinking about all of the fun things you will do after you stop working. Retirement is a time for being with family, relaxation, travel, and even taking up new hobbies and pursuits.
 
However, there are also substantial challenges in retirement that require disciplined planning. One of those challenges is the very real need for long-term care, which is extended support that’s required when a person struggles to complete basic activities of daily living, such as getting dressed and eating.