Smart Move: Retired and Living Longer

I saw a quote the other day that really made me think about why we buy insurance. We all possess a little of the “it will never happen to me” attitude. Only when tragedy occurs do we come to the realization that we are not infallible and that the potential for financial devastation exists. The quote reads:

“The art of living successfully consists of being able to hold two opposite ideas in tension at the same time: First, to make long-term plans as if we were going to live forever; and second, to conduct ourselves daily as if we were going to die tomorrow.” — Sydney Harris

We could add to that: “… to conduct ourselves as if we were going to come down with a critical illness tomorrow.” To cover those bases in retirement, we need to ask ourselves the following questions.

Will you have enough income and assets to last you throughout your retirement?

These days more Americans are retiring earlier and are living longer, sometimes several decades into retirement. Planning for your future can be a daunting task, especially when it comes to your finances. A major illness can have a serious impact on Boomers’ retirement plans. It is at this point in their careers that they are often making the most money and the highest contributions to their retirement savings. “A critical illness can have a significant impact on their lifestyle, both while they’re trying to recover from the illness but also on their retirement savings and when they’d be able to retire.”

Will you leave your loved ones with enough to continue living a lifestyle they are used to?

Making sure that your family is financially secure in the event of your death can be a huge concern. Before you retire, life insurance is an important source of security for your family, providing assets to your survivors that enable them to potentially:

• Replace the income lost from the death of a wage-earner
• Pay off mortgages and other debts
• Send children to college
• Maintain their standard of living

Just as important, life insurance proceeds can also potentially help your spouse enjoy a financially secure retirement by replacing years of retirement savings cut short by a premature death.

Will you be prepared for a critical illness in your retirement?

A prolonged and severe illness or disability can not only be devastating emotionally, but it can drain your financial resources quickly. Unexpected critical illness such as a heart attack, stroke or cancer can strike at any age, and they are costly. Individuals in retirement years rarely have enough time to recover from the financial devastation of a critical illness.

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