Retirement plot twistsThis content is categorized as:
Even if you've spent decades smartly saving and carefully planning for the future, there are still some unexpected twists that could throw your finances—and life—for a loop. When certain life events happen in retirement, they can quickly cut into your savings and leave you trying to replace the income you had planned to last throughout retirement. The good news is you can be proactive now to be financially prepped for the unexpected later. While there's no predicting the future, these three common situations could alter your course in retirement. Here's how to be prepared.
1. You or your partner has a health scare
Your employer health insurance or Medicare may not cover all the costs that can pile up with a serious illness or disability that could affect your family’s future. According to a recent cost of care survey, an assisted living facility costs an average of $4,500 per month and a home health aide averages to over $5,000 per month.
2. Your spouse passes away
If you suddenly lose your spouse, it not only can upturn your vision and plans for the future, but you may also be left to live on a single income. While death can be a difficult subject to discuss, it’s necessary to plan for such an event to ensure the financial future of the person left behind is secure and they can continue to maintain their quality of life without worrying about making ends meet.
3. Your family needs you
Many people who are in or nearing retirement end up caring for their aging parents, which can greatly affect their retirement savings. A study by AARP and the National Alliance for Caregiving found that half of caregivers say they used their own money for household-related expenses and 30 percent covered rent or mortgage payments for their loved ones. You may also end up financially supporting adult children or caring for your grandchildren for a variety of reasons. Without proper planning, your savings can be quickly depleted and you may not have enough income to last throughout retirement.
Remember that your retirement is still your top priority, so don’t lose sight of your own financial goals. Taking action today can help you navigate potential twists and turns with more resilience and ensure that the life you pictured as a retiree will still be waiting for you when that next chapter arrives. If you need help creating a sound financial plan that will help keep your retirement goals on track, feel free to connect with a financial professional who can offer valuable insight and guidance.
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