Reviewed by Aug 27, 2020| Updated on
The word ‘post-retirement risk’ generally points to the set of probable risks that are posed at the financial security that an individual may come across once he or she retires. The set post-retirement risk can lead to an unexpected expense or reduced income, both of which have the chances of putting even an excellent retirement plan into jeopardy.
A few of the most common risk of post-retirement is the death of a spouse, terminal or temporary illness, drastic changes in the economic and public policies.
Breaking Down Post-Retirement Risk
Most individuals usually perceive about planning for retirement and how they can go about their way to reach their goals. This generally covers deciding on the timing of their retirement, if they should go onto working on a part-time basis once they retire, what is the minimum income needed to sustain their retired life and the type of assets required to accomplish their goals.
Some individuals seek the help of financial planners or advisors to plan their retirement better. However, the population of people considering or discussing the potential risks that they may have to deal with once they retire is very minimal in India.
A lot of these potential risks tend to be similar to that you come across when in service. This might seem to be more pronounced because you have a reduced income to deal with these risks. Hence, its always a good idea to review retirement savings and how they can be affected by post-retirement risks.
Regardless of improved healthcare over the years, nobody is sure as to how long they will go onto be alive. Nevertheless, one should plan for at least 25 years of retired life. This will ensure that you are financially prepared to take on any risk that comes your way. Also, you will continue to stay financially independent.