Common post-retirement risks that seniors should know

Jun 10


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What are the post-retirement risks? The term means risks which are based on financial security that seniors may encounter once they retire. Post-retirement risks can lead to unpredicted costs and lesser income,


Which can risk even the well-planned ideas for seniors’ retirement. Few seniors talk about the risks which they may face post-retirement.

There can be different post-retirement risks,Common post-retirement risks that seniors should know Articles such as chronic illness, beforehand death of a spouse, irregularity of stock-market, economic aspects, outliving assets, inflation and public policy risk.

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Everyone confronts financial unreliability in retirement. For example, seniors are not aware of the timing of their retirement, their retirement income, care they may seek and how much help their friends and families provide post retirement.


You may face the same kind of risks which you use to face when in service. This may be noticed more post-retirement as you have lesser income in order to deal with these risks. Therefore, you should always evaluate savings of retirement and how post-retirement risks affect you.

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Even though seniors take good care of themselves, they are still unsure about how long they will be alive. However, people should set a goal to live at least 25 years of retired life.It means that they are prepared financially to undergo any risk which comes their way and are financially independent.

Types of post-retirement risks

Various post-retirement risks can have an effect on income. Seniors who are planning for retirement think about these risks cautiously. These risks are classified into four different categories, which includes; personal and family risk, health care and housing risks, financial risks and public policy risks.

Personal and family risks

These are risks which impact the personal life of retirees. Usual risks of this category are:

Risks of longevity or enduring your assets: People who live longer, need more money. Money received after retirement cannot last long, so your saving will be lesser.

Death: When there are any debts or medical bills which are to be paid, retiree’s financial burden may increase after losing a spouse. This can also reduce pension benefit.

Alteration in marital status: There is a big reduction in the retirement income after separation or divorce.

Financial aid to family members: When you give financial help to your dependents or children, you may find a decrease in your finances.

Health care and housing risks

The retiree, their spouse or their family members can face this risk.

Unexpected health care bills: Health caremay have medical bills and overhead expenses can reduce your retirement savings. Older adults may need regular treatment for different health related challenges.

Alteration in housing needs:Retirement savingsof seniorsgetsaffected when senior retiree surrenders their living situation or faces health issues and need a care facility to live in. These places can be little costly.

Absence of caregivers: When a senior needs caregivers, they may not be available all the time. Another reason why money gets exhausted for retirees can be long-term costs.

Financial risks

Inflation: This may bean ongoing issue, if you have a fixed income. Both low and high rates of inflation can be devastating.

Interest rate: Your retirement fund depends on the interest rate. Lower interest rate may be good for people, who are looking toborrow, rather than people who are looking to save.

Stock market:Losses of stock marketcan be another reason for decrease in retirement savings when the market value of the portfolio falls. There may be a lesser rate of return which you can obtain from your stock finance as compared to the long-term trends.

Business risks

When the employer who finances the pension plan, becomes bankrupt, then there can be loss of pension plan funds. This can also happen when the insurer which provides annuities becomes insolvent.

Public policy risks

Policy risks include, increase in taxes, decrease in entitlement benefits, Medicare and so on. There are various government policies which impact many outlooks of your lives. It includes the financial position of retirees that can change over time. You should not plan your retirement on the belief that policy of government will not be changed.


Sometimes your retirement plans can fail because of unexpected events. Few of these risks can be minimized by careful planning, while other possible risks are out of control. Therefore, seniors should know what the post-retirement risks are as it can help them to make sure that they are properly managed.

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