Life is full of surprises. Whether it’s job loss, divorce, or health issues, unexpected events can significantly disrupt plans to save for the future. When it comes to planning for retirement—a decades-long process—all it takes is one unforeseen change to put that planning on pause. But there are ways to prepar✅e for the unexpected.

With government resources and expert-recommended strategies in your back pocket, there’s no reason for life changes to completely derail your 澳洲幸运5开奖号码历史查询:retirement savings plan. Here’s what you need to know to anticipate change when pꦆreparing for retirement.

4 Life Events That Disrupt Retirement Planning

It’s hard to prepare for every curveball that life might throw at you, but it’s certainly possible to cover the bases. Life events like divorce, job losses, health issues, or the death of a spouse are significant events that can put a strain on 澳洲幸运5开奖号码历史查询:retirement planning.

1. Divorce

Divorce can have a serious impact on retirement planning. Potential changes in 澳洲幸运5开奖号码历史查询:household income or 澳洲幸运5开奖号码历史查询:the division of assets can 🌳affect how much money you can set aside for retirement savings.

“Though it is state-specific, generally speaking, any retirement funds that are subject to distribution are divid꧟ed between the parties, even if only one person earned the funds during the marriage,” says , author and founder of .

If you have a spousal or child support obligation and are saving for retirement, Sodoma says you could be slow to contribute to retirement accounts. After all, you may not have enough money left over after meeting those financial obl🅘igations.

Divorce doesn’t mean starting from scratch, but you may have to review your plans to 澳洲幸运5开奖号码历史查询:protect your retirement. Taylor Kovar, CEO and founder of , notes that divorce “may require individuals to revise their retirement goals, increase savingsﷺ rates, or delay retirement to rebuild their retirement funds.”

2. Job Loss or Layoff

Job loss can significantly impacꦕt a household budget and retirement plans.

“A job loss or layoff interrupts the ability to save money and may mean people have to use some of their savings ꦛfor day-to-day expenses,” says , senior strategic policy advisor at AARP. Depending on your circumstances, a job loss could make it hard to stay on track for retirement saving🦩s. This could result in having a smaller amount available for use at retirement or delaying retirement altogether, John adds.

Being laid off or fired could 𝐆mean you cannot contribute to an employer-sponsored retirement savings plan, says , principal attorney at Sodoma Law.

“When you consider that many employers provide the additional benefit of an 澳洲幸运5开奖号码历史查询:employer-matched contribution to retirement, additional savings will also be lost,” Dufault says. But if you were contributing to a non-employer plan like an 澳洲幸运5开奖号码历史查询:individual retirement account (IRA), you’d still be able to make contributions.

🌃 Dufault also notes that a job loss may require you to repay any loans you might have taken out against your retirement savings. “Jಌob loss will most certainly slow down your ability to put money away for your future use,” he adds.

3. Health Issues

Similar to job loss, significant health issues impact retirement savings when you’re forced to take time off or qu♐it work.

“Employer-sponsored plans require the participant to maintain employment, and significant enough health💦 issues could limit your ability to work,” Dufault says.

The cost of treatments for health issues could make matters worse. Most people get their 澳洲幸运5开奖号码历史查询:health insurance through their employer, so exiting the workforce because of an illness or while facing one can be financially and medically devastating.

Health problems could also bring about the need for long-term care, Kovar says, which can deplete retirement savings. “It may also force early retirement,” he adds, “reducing the time to grow retirement funds and [increasing] the duratio🍨n of drawing down these funds.”

These situations often come with little advance notice and leave individuals with less savings than expꦬected, John says. He recommends building contingency plans into your overall retirement approach, and researching any available government benefits that may apply.

4. Death of a Spouse

“The death of a spouse is a personal tragedy that often comes with financial repercussions,” John says. End-of-life care and funeral expenses can drain finances and retirement savings. 澳洲幸运5开奖号码历史查询:Life insurance may cushion the impact and allow the surviving spouse to ac💃cess shared assets, John adds.

It is common to see both spouses working, Dufault says, with each contributing to their own retirement. However, this is not always the case. “If you are in a situation where your deceased spouse was the sole contributor towards retirement, you may be faced w🌸ith a need to join the workforce to begin cont🌳ributing or to look to non-employer methods to begin saving for yourself,” Dufault says.

Strategies to Handle Disruptive Life Events

To get ahead of potential disruptive life events, you can emplo𝄹y several strategies to help manage and navigate🐼 changing retirement situations.

Review and Adjust Retirement Goals

In case of a disruptive lif🐷e event, reassessing your retirement goals and making any necessary adjustments is an important paꦕrt of bouncing back.

“The potential for unexpected s🐟hocks is always present,” John says. “Recognizing this fact and having a plan—even an imperfect one—can help reduce the shock and help people to meet the challenges.” He encourages everyone to estಞablish a retirement plan and regularly review it as circumstances change.

Whether it’s adjusting either expectations or savings goals, consistently reviewing retirement goals can make it easier to handle disruptive life events. Including these adjustments in regular family discussions is also key. Everyone in your family must know about the changes and where resources are allocated.

Create a New Budget

Responsible money habits include altering budgets to weather any disruption. To be financially prepared for life events, Kovar recommends setting up and maintaining an 澳洲幸运5开奖号码历史查询:emergency fund to cover at least six months of expenses. “Also, diversify investments to mitigate risks, and consider insurance policies like𝔉 life, disability, and long-term care insurance,” he adds.

Along with adjusting contribution amounts to retire﷽ment saving plans or changing monthly spending, be aware of spending against the budget and update it as circumstanceꦐs change.

“Stay informed about your retirement accounts, benefits, and government resources,” Kovar says, so yoꦚu can handle disruptive life events without sacrificing retirement savings.

Maximize Retirement Contributions

Being 澳洲幸运5开奖号码历史查询:proactive about retirement savings and contributions will set you up for success during difficult times. Maximizing retirement contributions before or after your income has recovered𓆏 from a disruptive life event can help prepare for or m🅠ake up for any setbacks.

Whether it’s maxing 401(k) and IRA contributions or simply starting to contribute regularly or frඣequently, increase retirement contributions when your income allows. Doing so will benefit your retirement savings balances, which can be used as emergency savings in worst-case scenarios.

Focus on the Long Term

Financeꦗs aside, significant and unexpected life events can be overwhelming. Focusing on long-term savings and making rational decisions with the future in mind is the best course of action. Focusing on the long term also means taking legal st𓆉eps to prepare and protect your family in case of an unexpected event.

“Creat﷽e a comprehensive estate plan, including wills and healthcare directives,” Kovar says. This preparation will ensure that legal aspects are in place should an unexpected event occur.

“Try to educate yourself as much as possible about the financial and retirement aspects in your life and/or marriage,” Dufault says. “Life happens, and if you can educate yourself about the rights you have as a surviving spouse or divorced spouse, you will be better off in the long run.”

Seek Professional Advice

Retirement planning can be a lot to handle under the best of circumstances. It can be helpful to seek guidance from financial advisors or 澳洲幸运5开奖号码历史查询:retirement planners to navigate challenging life events and get tailored advice specific to your financial situation.

Government Programs and Resources

Government programs and different resources can provide assistance during disruptive life events. For individuals who just experienced the death of a spouse, offer critical support, especially for young families with children. Dufault says this government benefit may also include coverage for the surviving spouse from a marriage that ended in divorce.

ꦅ and also support seniors and low-income individuals seeking financial assistance for health emergenci✤es. Unemployment benefits can help during a job loss or layoff.

Also, many nonprofit organizations 🐭offer support for those experiencing disruptive life events. They “have information to help people understand and manage their benefits and understand what is available and their options for the future,” John says. Plenty of resources are out there to help if distressing life events disrupt your r🍰etirement plans.

The Bottom Line

Unexpected events and expenses are a part of life. Divorce can derail retirement planning, change household income, and divide assets. Job loss or layoffs can lead to income loss and the need to pull from savings to supplement expenses. Health issues can increase medical expen൩ses, and the death of a spouse can creat𒈔e increased financial challenges for end-of-life care and funeral costs.

But there are plenty of strategies and resources available to help. Ultimately, being proactive about retirement planning means expecting that your savinꩲgs might be interrupted at some point in your working life. Resilience is critical to lon♓g-term prosperity.