Money Fix: Plan for retirement crises

The golden years can lose their luster when the retirement killers strike. There are many things that can wreak havoc with your best-laid plans. Here's a look at three of the killers on the "Most Wanted" list.

Long-term care: Few things are as deadly as medical expenses. Many people will need long-term care in their later years. Consider an insurance policy to help pay those costs. Purchasing a policy is cheaper when you're young, versus in your 60s and later. "Medical costs can kill retirement. They drain wealth quickly. The cost of care in Long Island is among the highest in the U.S.," says Michael Fliegelman, a chartered financial analyst in New York City.

Longevity risk: The good news is, people are living longer. The bad news is, paying for those extra years is tough. Running out of money is devastating. Nobody wants to be the bag lady. What's the remedy? Save young, often and go for growth investments. Reduce debt and delay full retirement, says David Bendix, president at The Bendix Financial Group in Garden City. Consider part-time work during retirement, and vow not to tap Social Security until full retirement age if you are in good health.

Downsizing too late: When you worked full time, you saved, you spent, no problem. In retirement, there's no paycheck, no overtime. Cut back. Says William Hammer, vice president of Vanderbilt Partners in Melville, "Many retirees resist downsizing. Downsize early and save. Don't wait until you put your retirement in jeopardy."