The Importance of Retirement Savings: Instances When You Need Them

Many people view their retirement accounts as flexible savings that they can use in various situations. From helping out their adult children, financing a business (for themselves or a family member), or even when accidents occur, such as a cracked engine block. Retirement sounds like an ideal situation where folks finally get to retire from their jobs and move on with a life they find interesting and enjoyable. Like any situation in life, retirement requires planning, or else you risk running out of money and succumbing to problems that could easily have been prevented. Read on and discover the importance of only dipping into retirement at select times, and why it should be done as sparingly as possible.

A Medical Issue Arises

Medical problems become common as we get older. An emergency might occur, such as falling and breaking a hip, thus creating the need for a hip replacement. Although we do the best we can to plan our way around these medical emergencies it’s not always easy or possible. In cases of difficult situations, where going without medical intervention or care would impose a negative affect on your life, use what money you need to manage your situation.

Jeff Sheldon

Be aware that if you use these expenses after retirement, you shouldn’t run into problems. However, if you withdraw from certain accounts before a predetermined age, you’ll encounter penalties and other infractions. Use if you need to, but be aware of what the circumstances may do to your situation. In the end, there’s no putting a price tag on your health or well-being, and that includes using your retirement account for medical expenses.

Your Situation Changes and You Cannot Live on Your Own

Many people used to avoid going to a nursing home by depending on their children to take care of them. Years ago, this wasn’t a big deal, because women stayed at home. As homemakers, they looked after the house, children, and older adults within the family. Today, this is a delicate balancing act that not all families can commit to. With the rising increase of living, many families are forced to work outside the home, and often more than one job. This leaves little time to provide the type of care that most seniors need. If you find yourself in a situation where you can no longer live on your own, but your adult children aren’t able to care for you, using your retirement funds to help you find residence in a nursing home is an option.

Many people think they shouldn’t do this because they will miss life, or their family and friends won’t visit them as often. Nursing homes have changed, with various options to allow for more independent living that best suits one’s lifestyle. It’s important to find one that resonates with you, and meets your needs for the type of life you are looking for. Once you do, you shouldn’t feel shy about using your retirement funds to assist you in getting the care you need.

Something Happens to Your Spouse

If you and your spouse had planned a life together after retirement and something unexpected happens, you may be unsure of what to do. If they were still working, this has thrown a wrench into your plans. Or perhaps you were left with many unexpected medical bills and there’s no way to pay them. In cases such as this, always talk with a financial planner. Depending on how old you are and your situation, there may be ways to avoid financial ruin, such as working (even if it’s part time), using other savings, or downsizing on your lifestyle. In cases where you are left with bills to pay after losing your spouse, using retirement funds is sometimes the best approach, given your options and capabilities. Don’t make the decision lightly, and always seek help from an outside source, who can advise if this is the best thing to do.

There are many situations where dipping into retirement funds is one of the worst things to do. Avoiding these problems is important, if you know what circumstances are okay to do so in. An unexpected medical procedure that requires a lot of money or leaves you with several bills, and losing your spouse are a couple of instances where you need all the help you can get. If you find yourself at the point where you need care, but no one in the family can help provide it to you, and the only way you can do so is through a nursing home or other outside help, that is also an acceptable reason. Knowing when to use and when to save is crucial, to get the most out of retirement.

Blogger-in-Chief here at RetirementSavvy and author of Sin City Greed, Cream City Hustle and RENDEZVOUS WITH RETIREMENT: A Guide to Getting Fiscally Fit.

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