Preparing for the Unexpected in Retirement

Retirees may find themselves experiencing unforeseen and difficult circumstances at one point in time or another. Certain situations can leave them wondering what they could have done to better prepare themselves to handle unexpected occurrences, especially when it comes to highly complex issues. Here are three circumstances where implementing an effective retirement strategy can and […]

Thrive invites voices from many spheres to share their perspectives on our Community platform. Community stories are not commissioned by our editorial team, and opinions expressed by Community contributors do not reflect the opinions of Thrive or its employees. More information on our Community guidelines is available here.

Retirees may find themselves experiencing unforeseen and difficult circumstances at one point in time or another. Certain situations can leave them wondering what they could have done to better prepare themselves to handle unexpected occurrences, especially when it comes to highly complex issues. Here are three circumstances where implementing an effective retirement strategy can and may help retirees better prepare themselves for the unexpected.

Financial Losses

One common unanticipated situation a retiree may encounter is financial losses. Losses can be a result of several events that may include but are not limited to returns on an investment, liquidation, fraud, inflation, market volatility, and others. Devising, implementing, and executing an effective strategy can make their effects less severe or even help prevent some of these circumstances from occurring as their strategy should include preventive steps to avoid potential incidents.

Sudden Death of a Loved One

Another abrupt and unexpected circumstance a retiree may experience is the death of a loved one. This type of devastating situation can severely affect the retiree not only emotionally but also financially. For this reason, devising a strategy that includes a legacy component can be beneficial as it can help reduce the financial burden on the retiree to allow them to focus on grieving.

Healthcare Long-Term Expenses and Gaps in Coverage

As healthcare costs continue to rise, expensive costs associated with long-term care are another type of unexpected situation retirees may experience. Medicare does not typically provide long-term care benefits, forcing retirees to pay out-of-pocket for care. A health expenses strategy can better prepare them for this type of incident as it should include an allocation of funds for healthcare services and costs associated with gaps in coverage.

The Bottom Line

These are only to mention three common unexpected circumstances retirees may be exposed to and how careful planning can better prepare them to handle these situations. A robust and complete strategy should include legal instruments like a will and/or a trust, power of attorney, healthcare power of attorney, beneficiary designation, guardianship designation, and a letter of intent at minimum. Combining these components with a variety of insurance policies or other financial products as appropriate can help provide greater assurance that you’re positioned to weather whatever comes your way. 

    We use cookies on our site to give you the best experience possible. By continuing to browse the site, you agree to this use. For more information on how we use cookies, see our Privacy Policy.