Your Insurance Matters: Guard Against Threats To Your Retirement Savings

Your Insurance Matters
Guard Against Threats To Your Retirement Savings
By Shirley R. Lamdan, CLU

There are many ways to help your retirement nest eggs grow including maximization of contributions and close monitoring of accounts. Unfortunately, there are also common risks that can decrease retirement assets. Once you know what these mistakes are, they can be more easily avoided.
Planning for retirement doesn't end during the retirement years. In fact, you may have retired from work, but you must not retire from ongoing retirement planning. Well into your retirement years, planning must continue to guarantee your financial security. It is vital to understand post-retirement challenges and how they can affect your long-range security.
One of these dangers concerns post-retirement work -- whether employment or self-employment. Many retirees plan to supplement their retirement income by working into their 70s. Today, many companies make it a policy to encourage hiring seniors. Older workers bring with them years of job experience and strong work ethics.
However, many factors can influence business and employment prospects. As the world is experiencing currently, changing economic conditions may cause dramatic decreases in job availability and business prospects.
Market demands for certain technical skills can impact work availability. Not all retirees find it possible to acquire or sustain required technical capabilities. Health status and family issues strongly influence employment and self-employment prospects.
In other words, it is not absolutely certain that there will be appropriate work or employment available for people preparing for retirement or already in retirement.
Another threat that can decrease retirement savings involves family issues. What would happen if a family member needed your financial help?
Retirement planning should acknowledge the very real possibility of furnishing financial assistance for family members during the retirement years.
Policyholders of mine in North Carolina have just experienced this drain on their nest egg. I visited with them last spring to review their insurance contracts. Their son had lost his job and could not find a new position for so long that he had no choice but to move in with them. Finally, after nearly eight months, he found a new position in another state. The couple assisted with his relocation, new apartment expenses, and a (used) car. He had been forced to sell his other car while out of work.
I didn't ask them how much all this amounted to in dollars and cents, but I'm sure it was plenty. They're hopeful he'll eventually be able to repay some of the costs.
A woman policyholder of mine in Pennsylvania is 76 years old and has been helping her grandson, his wife, and their young son for over two years. He was finishing his final year of law school when they first moved in with her. He is still looking for work although he's earned his law degree and has passed the bar exam.
Many retirees will find themselves helping family, such as parents, children, grandchildren, and siblings. Other examples of assistance include paying healthcare costs for elderly relatives, paying higher education fees for family members, and assisting with unemployment, divorce or other financial troubles.
Helping family when there is a change in health, employment, or marital status will impact the retirement nest egg. Ongoing retirement planning and careful management of retirement funds over a lifetime must recognize the potential impact of these events on financial security during retirement.

Since 1982, Shirley Lamdan, CLU, of Hagerstown, MD, has been furnishing individuals, corporations, and non-profits with independent retirement and insurance services. The website is www.lamdanselect.com. Email address is slamdan@lamdanselect.com. Toll free telephone: 800 628 3449.