Is Your Retirement Protected Against a Natural Disaster?
Retirees face numerous financial risks, like excessive medical costs or outliving their savings. One risk that may be overlooked, however, is the threat of natural disaster. Obviously, natural disasters are unpredictable and can often be costly events. You may not think it’s a significant concern, but retirees who recently experienced Hurricane Matthew may tell you different.
It’s important for seniors to at least consider how a natural disaster may impact their retirement and their financial stability. Below are four tips to help you minimize the impact a natural disaster could have on your retirement:
Keep an emergency fund.
It’s always a sound strategy to have an emergency fund. The fund can help you recover from any number of unexpected costs, including the damages you may incur in the event of a natural disaster.
Your fund should be large enough to help you temporarily support yourself in the wake of a disaster. For instance, you may want to keep enough money for temporary housing while your home is being fixed, or enough to cover a wide range of home repairs. The important thing to remember with an emergency fund is to resist the urge to use it for anything other than an emergency.
Develop a medical plan.
Some natural disasters can arise with little advanced notice, in which case you may not have time to prepare. This is especially important to consider if you have medical conditions that need to be taken into account or critical prescriptions. Think about keeping a supply of emergency backup medication in a safe, in an easily accessible location.
Also, if you have medical devices like a wheelchair or braces, you should think through how you can protect these devices and quickly load them in the event of an evacuation. Planning around your medical concerns can save you a lot of time and trouble during a natural disaster.
Talk to family and friends.
Loved ones can be one of your greatest assets during a natural disaster. It may be a good idea to talk with them and develop a plan. You may want to designate a nearby friend or family member to come and check in on you to make sure you have everything you need. If you need to evacuate, try to find someone you can stay with until the event is over.
Err on the side of caution.
Sometimes people think they can weather the storm or wait until the last minute to evacuate. Even if you’ve hunkered down in the past, you may find it’s more difficult now that you’re older. If you or your spouse have mobility or cognitive issues, you may move slower than others. Leaving early or evacuating even if it isn’t mandated can help you avoid a last-minute scramble.
Have you planned for all the potential risks you may face in retirement? Let’s talk about it. Contact us at Ambrose Financial & Insurance Services. We can help you evaluate your objectives and needs, and then develop a strategy. Let’s connect soon and start the conversation.
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16163 – 2016/10/18