The top risks that could derail a good retirement plan
Ask any experienced financial planner what causes a retirement plan to fail, and they will likely agree that it is never a result of bad portfolio returns. So if a poorly performing portfolio is not the problem, then what is? Some of the answers may surprise you. Here are examples of how life’s circumstances can derail even the best retirement plan, and what to do to avoid, fix or repair it.
With improvements in medical treatment and increases in longevity, an unexpected illness when you are in your 60s, 70s or 80s may drag on longer than it did just a decade ago. One of the first things you should do is to learn how your current employee benefits (or those of your spouse) work and understand how the employer treats retiree health benefits. What will be the implications of that plan in retirement?
If your spouse is covered under your plan only, or vice versa, find out how the spousal benefits will work in retirement. For instance, will the surviving spouse be entitled to continue with the benefits if the employee dies? Having a complete understanding of how the benefits work will allow you to make informed decisions going forward.
