Yes, You Still Need a Financial Plan in Retirement

Are you recently retired or nearing retirement? If so, you may believe that a financial plan isn’t necessary at this stage of life. After all, retirement planning is a major component in most financial plans. If you’ve already achieved your retirement goals, do you still need a plan?

The truth is that retirement planning is just one piece of a comprehensive financial plan. Even after you retire, you will still have other financial objectives, challenges, and needs. You’ll need to make your retirement assets last through your lifetime. You may have legacy goals on how your estate is distributed after your death. You will likely face health care costs and other financial risks. A comprehensive financial plan can help you tackle these issues.

Do you have a comprehensive financial plan? If you’re like most Americans, probably not. According to a 2013 study by the Certified Financial Planner Board of Standards and the Consumer Federation of America, only 19 percent of Americans could be categorized as Comprehensive Planners, meaning they have a defined plan that addresses all areas of their financial lives. The remaining 81 percent may plan for individual goals, like retirement or college, or may not engage in any financial planning.1

Still not convinced you need a financial plan in retirement? Below are a few ways in which you might benefit from comprehensive financial planning:


Prioritize your goals and risks.

Getting to retirement may have been your lifelong financial goal. However, retirement isn’t the end of your financial journey. It’s simply the start of a new phase. You may have plans to travel the world, start a new business or achieve other goals. Your comprehensive financial plan can help you clarify and prioritize those goals, so you know how best to focus your savings and your energy.

You’ll also face risks in retirement, such as market volatility, health care costs, long-term care needs and more. Your comprehensive financial plan should address those risks and lay out a strategy to minimize the threat.


Manage your cash flow and budget.

Your approach to spending and money management could make or break your retirement. Spend too much money in the early years of retirement, and you may not have assets left to support yourself in the later years.

You can use your comprehensive financial plan to develop a budget and cash flow strategy that protects your financial stability. With a plan in place, you’ll know exactly how much you can spend, which will help you make disciplined and informed decisions.


Take control of your health care expenses.

As a retiree, you will likely enroll in Medicare, which should cover much of your medical costs. Medicare doesn’t cover everything, though. In fact, Fidelity estimates that the average retired couple will spend $260,000 out of pocket on health care, and that figure doesn’t even include long-term care.2

A comprehensive financial plan can help you estimate your potential health care costs and develop strategies to cover the expenses. You may utilize different types of insurance, like long-term care insurance or supplemental Medicare insurance. Or you could use accounts like a health savings account (HSA) to create a reserve for medical costs. Your plan can help you decide what’s right for you.


Plan your legacy for your loved ones.

It may not be pleasant to consider, but as you get older, death will likely play a larger role in your planning. When you pass away, you will leave a legacy to your loved ones. Will it be a legacy that leaves them in a comfortable financial position? Or will your death create significant financial challenges for those who are closest to you?

Estate planning is about more than just developing a will. It’s about defining your legacy and creating protections for your loved ones after you pass away. It’s a critical planning component for anyone with dependents or a desire to care for their loved ones.

Ready to develop your comprehensive financial plan? Let’s talk about it. Contact us today at TB Financial. We can help you identify your needs and goals and then develop a strategy. Let’s connect soon and start the conversation.





Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

16529 – 2017/3/22

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