Preparing for Retirement Curveballs

You have a dream of what your retirement will look like – traveling, spending time with friends and family, or picking up new hobbies. And you’ve saved throughout your career to make those dreams a reality. But what happens when you get a curveball thrown at you? Are you going to strike out, or are you going to be able to make a base hit or turn it into a homerun?

According to a study by Age Wave¹, 75% of retirees have experienced a major curveball event — women more than men. The most common curveballs are personal health issues, coping with a spouse’s or partner’s health issues, significant financial setbacks, or death of a family member or close friend.

Health

The National Council on Aging learned that 80% of people 60 and older lack the financial resources to cover long-term care services or another financial shock.² Yet one in seven older adults will require such care for more than five years. There are several options on how to prepare for and pay for long-term care needs such as self-funding, long-term care insurance, annuities, and more. Making a plan for covering unexpected health costs in older age should be one of the top priorities when looking at your overall retirement picture.

Finances

A dip in the market, recession or loss of a job can impact your retirement balances or timeline. Some events can be a blip on the radar, but some can feel devasting. Focusing on the long game, you can correct the course. Continue to work on reducing or eliminating mortgage, credit card or other debt; saving as much income as possible during working years; and developing and following a financial plan and budget. If there is increased volatility or a negative shift in the economy, you should make adjustments to spending and focus on long-term wealth and savings goals.³

Losing a Loved One

The death of a spouse can be devasting for the surviving spouse and can have a substantial impact on the surviving spouse’s retirement lifestyle. In many cases, it results in a decrease in income for the surviving spouse. Examining investment structure, social security and healthcare benefits, and re-evaluating living arrangements are all considerations after the passing of a loved one.⁴

A Game Changer

New Age reported that 80% of retirees have experienced at least one “windfall” event, a positive gain often described as “good fortune” or a “blessing”.⁵ And surprisingly, most retirees reported that those windfalls were not financial in nature. The most fulfilling windfalls for retirees include becoming a grandparent, taking a dream vacation and discovering a new or renewed purpose in life. The study revealed that feelings of freedom, happiness and resilience all peak in retirement, while anxiety hits its lifetime low.

Staying nimble and making adjustments can make the difference between struggling or winning in retirement. Working with a financial advisor who can help you prepare for and adapt to the curveballs is crucial to your financial and retirement success. The advisors at Brogan Financial are here to help you make the most of your retirement. Give us a call today to schedule a complimentary review of your retirement game plan.