SEARCHING FOR A LIGHTHOUSE 2 WHAT CAN YOU DO? Take your time and pro- including multifactor authentication. Where ceed with caution when meeting new people on- available, consider enabling multifactor authen- line. If you feel pressure to share personal or 昀椀- tication when accessing any of your 昀椀nancial in- LONGEVITY RISK: nancial information with someone you have just formation, especially your retirement accounts, met, do not be afraid to take a step back and speak and keep your mobile phone number and email 1 The risk that a retiree will outlive their retirement with a trusted family member, friend, or advisor address used to verify your identity up to date savings. about your concerns. Review the source of emails with each of your 昀椀nancial institutions, includ- and texts closely before opening them to make ing the IAM National Bene昀椀t Funds Of昀椀ce. MARKET RISK: sure that you are receiving a message from a 2 For those retirees saving through a 401(k) or other contact that you recognize or can independently investment vehicles, the verify. Avoid opening links or attachments from TOP FIVE RISKS risk that investment losses suspicious or unknown sources; rather consider or market volatility will ROCKING negatively impact their deleting the email or text and blocking the send- retirement savings. er from contacting you further. THE BOAT TO RETIREMENT HEALTH RISK: MORE THAN JUST A 3 The risk that a retiree will READINESS have unexpected medical PASSWORD or long-term care needs and insuf昀椀cient retirement Retirees face numerous challenges when pre- savings to cover out-of- We’ve all been warned of the importance of paring for retirement. A brief recently released pocket expenses. password safety, and we’ve learned to use by the Center for Retirement Research at Bos- lengthy passwords containing letters, numbers, FAMILY RISK: 3 ton College outlined the 昀椀nancial risks retirees The risk that a retiree may and symbols, and to use a unique password for face in retirement and how retirees view these 4 experience a divorce, each account to avoid giving a cyber thief con- risks when planning for retirement. death of a spouse, or take trol over not just one but possibly all of our ac- on an unforeseen 昀椀nancial counts. These are just the 昀椀rst steps to optimiz- burden of an adult child or family member. ing your password protection. Most 昀椀nancial institutions now require you to enable multifac- POLICY RISK: tor authentication, which as the name suggests, 5 The risk that a retiree’s uses more than one method or device to verify retirement bene昀椀t, like Social Security, will be your identity. For example, when you attempt to reduced or eliminated. log into your bank’s website with your username and password, your bank may call, text, or email a code to the phone number or email address The IAM National Bene昀椀t Funds offer bene昀椀t they have on 昀椀le for you to con昀椀rm that it is you options to help address these risks, such as sup- who is accessing your account. plementing a retirement bene昀椀t under the IAM Na tional Pension Plan by starting or increasing According to Microsoft’s October 2021 Digital 2 Microsoft Corporation. (2021). Microsoft Digital Defense Report contributions to the IAM National 401(k) Plan (October 2021) from https://query.prod.cms.rt.microsoft.com/cms/ api/am/binary/RWMFIi#page=121. Defense Report, 98% of hacking attempts can 3 Wenliang Hou. (2022, July). How Well Do Retirees Assess the Risks or exploring $0 cost preventive care services be prevented using basic security measures, They Face in Retirement? (Issue Brief No. 22-10). Center for Retirement through the National IAM Bene昀椀t Trust Fund. Research at Boston College. 12 JOURNEY TO RETIREMENT OCTOBER 2022