From Dad to Grandpa: What Every Dad Should Know About Planning for Retirement Emergencies
Written by Jess Dawkins.
Planning for retirement as a father requires considering not just your own lifestyle later in life, but also that of your entire family. Family care, including emergencies, doesn’t stop just because you retire. While kids may fly the nest or other family dynamics may change, you’ll still need to prepare for retirement with your family in mind. Where do you start? What should you factor into your savings plans? How do you prepare for life emergencies that may occur when you’re no longer working?
Emergency Funds Are a Lifeline
Families experience a fair share of emergencies, from a car accident here to a broken bone there. As you age, emergencies can become more common, particularly in relation to health. Financially preparing for any emergencies that may occur can help you immensely during retirement, where funds are often limited to savings alone. You will want to factor major emergencies into your savings plan to ensure you can support yourself and your family even when your career comes to an end.
Expect Healthcare Surprises
It’s common for health to decline as you get older, which can result in dangerous falls or life-threatening medical emergencies. Older adults are also more prone to developing conditions such as cancer and heart disease. While retirement is a time of relaxation and enjoyment, it’s essential to be proactive about your family’s health to minimize the risk of unexpected healthcare expenses. Preparing for healthcare surprises is more than just a financial measure. You’ll want to take advantage of preventative care, establish a solid healthcare team (including mental health support), and ensure your health insurance covers you and your family.
Include Your Family
Your family will age alongside you, and you don’t want to leave them in the dark when it comes to retirement planning. Be forthcoming about any health conditions or financial insecurities you may be facing. Gather their input on your retirement goals. Encourage open conversations about life and health, even when kids have long flown the nest. Involve your kids in the care for any grandparents, aunts, uncles, and other older adults in their lives. The more involved your family is, the more support you can provide for one another. You don’t want your kids to be caught off guard by any health conditions you may be facing later in life.
Plan for Legal Support
You will want to protect yourself and your family when you retire, which will require some legal countermeasures. In the event of emergencies or at the end of your life, you will want to make decisions about where your assets, such as your finances, home, and business, will be distributed. An estate attorney can help you put these wishes in writing, making them official in the eyes of the law. You can also establish advance directives in case of emergencies that occur when you’re alive and otherwise unable to make decisions for yourself. Certain physical or cognitive conditions may lead you to seek assisted living or nursing home care. Emergencies can occur here as well, including neglect and abuse in worst-case scenarios. A designated attorney can help protect you and report any physical, emotional, financial, or sexual abuse in nursing homes. While legal help is often a necessity in terms of estate planning or in case of emergencies, they do come with legal fees that you’ll need to prepare for in your savings plan to protect you and your family.
Avoid Early Withdrawals
When finances get tight, it may be tempting to withdraw from your retirement plan a little early. A little handful here and there couldn’t hurt, right? Those handfuls do add up, and the earlier you withdraw from your retirement plan, the less you have to use in retirement. You’ll need your retirement plan to allow you to live comfortably for the rest of your life. If you end up living longer than you expect or unexpected emergencies deplete your savings, you may be left financially insecure as an older adult. Financial insecurity is devastating, not just for you but for your family as well.
Revisit Your Planning Strategies
Retirement planning isn’t about setting it and forgetting it. Your family dynamics and goals will likely change, especially as you age. Perhaps you want to travel, which requires saving more money for leisure activities in retirement. You may need to get a divorce, which can require additional financial resources for child support or single parenting. Review your savings and retirement strategies to ensure they align with your current and future goals and lifestyle. The more you reassess and review your retirement plans, the more on track they’re likely to be with what you need.
Conclusion
It can be difficult to consider both your family and yourself when making retirement plans. Will you travel, or live at home? Will you provide college tuition for your kids? There are many factors to consider, and it’s challenging to know just what to prepare for and how much to save. You can always revisit your planning strategies to make adjustments as your goals and lifestyle change. Be open with your family and include them in retirement plans and discussions to help make more informed decisions. Prepare for unexpected emergencies, including health conditions, as well as financial and legal issues. Transitioning from a father to a grandfather can come with many joys and challenges, but you can prepare better when you expect the unexpected.
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