by KYW's Salil Gutt

Most of the information on retirement focuses on investments or how to draw down your savings smart. One aspect tends to be overlooked:  recognizing and managing risk.

Here are three important risks along with solutions.

One. Outliving your money. This is easily the biggest risk and a major source of concern to retirees. A good way to reduce this risk is to learn to live on 3% of your financial portfolios value in the earlier years of retirement and to never go beyond 5%, ever.

Two. Health care costs could tear apart the most carefully crafted financial plan. This could run up to $300,000 per person. The solution is to save separately for health care costs or buy long term care insurance after one starts collecting on social security.

Three. Loss of spouse or partner. Two do live cheaper than one. Studies reveal that a single person needs about 75% of the income of a married couple. It is likely that women may live widowed for 15 years or more. This is where the purchase of immediate annuities makes sense where an income stream is guaranteed for as long as both shall live.