4 Unexpected Circumstances You Should Factor Into Your Retirement Planning

The mere thought of retiring soon gives you motivation to push through with even the most lackluster workday. In a few years’ time, you’ll be finally be able to pursue the things that you like – going on a vacation to an exotic location without worrying about coming back to work, restoring the classic car you bought ages ago, playing round after round of golf on a weekday, or pursuing other interests you have neglected.

It is fairly normal for people who are well on their way to retirement to dream about recreational purchases. However, before you indulge in these, you have to make sure that you have all of your bases covered, including unforeseen expenses which can dampen your enjoyment of your retirement years.

When it comes to retirement planning, you need to determine whether your savings will be enough to cover your retirement expenses. But apart from your living, recreational and emergency expenses, there are a few unexpected circumstances that can put your retirement finances in disarray.


While divorce can be emotionally crippling for people of all ages, it can be especially devastating for retirees. One reason behind that is the fact that retirees do not have a monthly paycheck to rely on, as well as the other benefits of being employed.

Getting remarried (and divorced again) can also adversely affect your retirement account. Think about it: Every time you get divorced, your account gets halved, leaving you with considerably less than your initial investment. Financial planning experts recommend prenuptial agreements for those who are planning to give marriage a second (or third) try.


Bankruptcy can occur at any age. In fact, one in 25 of those who enter bankruptcy are retirees. However, going bankrupt while you are already in retirement has a few upsides. For one, your retirement accounts cannot be touched by creditors if you are unable to pay for your debts. You are also protected by homestead exemption which allows you to keep your home.

Family emergencies

Retirees sometimes find themselves dipping into their savings fund in order to cover a family emergency. In order to avoid these unexpected expenses from substantially diminishing your savings, set aside a budget for these on top of your projected daily expenses.

Lost value of savings and investments

It is difficult to predict how the market will swing, and even if you are conservative in your approach toward investments and savings, the market can undermine even the safest of investment platforms, like mutual funds. Fortunately, if you have invested in mutual funds, you can write off your losses on your taxes as an offset to capital gains when you are planning to sell your shares.

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