by Rick Kahler

Too many life-changing things can happen without regard to our best-laid retirement plans. But even if you can’t plan for all the things that might happen as you age, you can prepare to deal with them.

Retirement planning is one of the issues that commonly leads clients to consult financial advisers. One of its essential aspects is creating a plan to save and invest in order to provide a comfortable retirement income. Ideally, this starts many years ahead of retirement, even as early as your first paycheck.

All of this planning is crucial. Yet, for both financial advisers and clients, it’s good to keep in mind that planning has its limits. In the post-retirement years, it may be helpful to think in terms of preparing for old age rather than planning for it.

What are some of the ways to prepare for these contingencies?

1. Explore housing options well ahead of time.

Find out what assisted living, home care, and nursing home services and facilities are available where you live and whether they have waiting lists. Have family conversations about possibilities like relocating or sharing households.

2. Research the financial side of these options.

Investigate the cost of hiring help at home, assisted living facilities, and nursing care centers. Find out what is and is not covered by Medicare and long term care insurance. For example, people are sometimes surprised to learn that Medicare does not pay for nursing home care other than short-term medical stays.

3. Designate someone to take over decision-making and do the paperwork.

Execute documents like a living will, medical power of attorney, and contingent power of attorney. Update them as necessary and give copies to your doctors, your financial planner, and appropriate family members.

4. Start relatively early to downsize.

Well before you’re ready to let go of possessions or move into smaller housing, start considering what to do with your “stuff.” Focus on the decisions rather than the distribution. There’s no need to get rid of possessions prematurely, but decide what you want to do with them and put it in writing. Do this while it’s still your choice, rather than something your family members do while you’re in the hospital or nursing home. (See Is Downsizing In Retirement Right for You?.)

5. Do your best to practice flexibility and acceptance.

No matter how strongly you want to live in your own home until the end of your life, for example, it may not be possible. The physical limitations of aging can limit our choices, and even the best options available may not be what we would like them to be. It is a profound gift to yourself and your family members to accept these realities with as much grace as you can muster.

Finally, please don’t underestimate the importance of planning financially for retirement. The bottom line is that you can’t plan for all the things that might happen as you age, but you can prepare to deal with them. One of the most useful tools to cope with those contingencies is having enough money.

• Determine Your Long Term Care Needs
• Preparation Steps To Take As You Close In on Retirement
• Comparing Retirement Housing Options
• 5 Things To Do as Soon as You Retire

Reviewed August 2023

About the Author

Rick Kahler, MSFP, ChFC, CFP, is a fee-only financial planner and author. Find more information at KahlerFinancial.com. Contact him at Rick@KahlerFinancial.com.