Protecting you wealth, health, and privacy

We’re right in the middle of our seven-step journey to building a successful retirement. In earlier steps, we’ve talked about creating your vision for life after work, building a spending plan, identifying income sources, and designing an investment strategy. Together, those four steps form the foundation of a retirement plan that can bring your vision to life.

But even the best plan in the world can be derailed if it isn’t protected. That’s why Step 5 focuses on safeguarding three critical areas of your retirement: your wealth, your health, and your privacy.

Protecting your wealth

You may have saved diligently, invested wisely, and mapped out a thoughtful spending plan. But without protection, risks could undo years of preparation. Here are a few of the most important areas to review:

• Life insurance*: Retirement is the perfect time to reassess your coverage. You may find you no longer need as much life insurance—if the mortgage is paid off, the kids are grown, and you’ve built a solid nest egg. On the other hand, you may still want coverage to provide for a spouse, help with estate taxes, or leave a legacy. The key is to sit down with an advisor and evaluate what’s right for your situation.

• Property and liability insurance: Protecting your home, vehicles, and other assets remains just as important in retirement as before. Review your property and casualty policies and make sure they align with your lifestyle. Don’t overlook liability coverage—an umbrella policy can provide added protection against lawsuits that go beyond the limits of your home or auto insurance.

• Debt management: Entering retirement with too much debt can put unnecessary strain on your lifestyle. Create a plan to pay down credit cards, high-interest loans, and eventually your mortgage if possible before you retire. Reducing these obligations gives you more freedom and flexibility in retirement.

Protecting your health

Health care is one of the biggest—and fastest-growing—expenses in retirement. Planning ahead is critical.

• Medicare and beyond: At 65, Medicare will cover much of your medical care, but not everything. Part B (doctor visits, tests, outpatient care) and Part D (prescriptions) both come with premiums, deductibles, and co-pays. Many retirees choose to add Medigap coverage or Medicare Advantage plans to fill in the gaps. If you retire before 65, you’ll need a strategy to bridge the insurance gap, whether through COBRA, private coverage, or part-time work with benefits.

• Long-term care**: One of the biggest misconceptions is that Medicare covers nursing home or assisted living expenses—it doesn’t. You’ll need a plan, whether that’s long-term care insurance, hybrid life insurance with long-term care features, or the ability to self-insure with your own assets.

• Legal documents: Protecting your health also means ensuring your wishes are honored if you can’t make decisions yourself. At a minimum, consider an advance directive (living will) and a health care power of attorney. These should be part of your estate plan and updated regularly.

Protecting your privacy

Retirement can make you more vulnerable to fraud and identity theft. Protecting your personal information is just as important as protecting your assets.

• Organize records: Decide how you’ll store important documents—whether in a filing system at home, a safe deposit box, or secure digital storage. Just as important, make sure your spouse or trusted family members know how to access them.

• Cybersecurity and identity theft: Take steps to reduce your risk, from freezing your credit to using secure password managers. If your identity is ever stolen, you’ll want a plan in place to respond quickly.

The bottom line

Protecting your wealth, your health, and your privacy may sound like three separate projects—but together, they form one of the most essential steps in your retirement journey. You don’t want to leave these areas to chance. By addressing them ahead of time, you give yourself the peace of mind to enjoy the vision you’ve worked so hard to create.

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*Life Insurance: These policies have exclusions and/or limitations. The cost and availability of life insurance depend on factors such as age, health and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Guarantees are based on the claims paying ability of the insurance company.

**Long Term Care: These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company.