Post-Retirement Risk


DEFINITION of 'Post-Retirement Risk'

The potential risks to financial security that a retired individual could encounter. Post-retirement risks can result in unexpected costs and expenses or lower income, which can jeopardize even the best-laid retirement plans.

BREAKING DOWN 'Post-Retirement Risk'

Most discussion concerning planning for retirement is concentrated on the need to accumulate savings to provide income when paid employment comes to an end. The Society of Actuaries in the United States identified 15 post-retirement risks, which include:

-Personal and family risks
-Healthcare and housing risks
-Financial risks
-Information and public policy risks

Some post-retirement risks can be managed by purchasing insurance, such as life insurance or healthcare insurance. Other risks might require contingency funds to handle unforeseen circumstances.

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  1. When can catch-up contributions start?

    Most qualified retirement plans such as 401(k), 403(b) and SIMPLE 401(k) plans, as well as individual retirement accounts ... Read Full Answer >>
  2. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>
  3. Are 401(k) rollovers taxable?

    401(k) rollovers are generally not taxable as long as the money goes into another qualifying plan, an individual retirement ... Read Full Answer >>
  4. Are catch-up contributions included in the 415 limit?

    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>
  5. Can catch-up contributions be matched?

    Depending on the terms of your plan, catch-up contributions you make to 401(k)s or other qualified retirement savings plans ... Read Full Answer >>
  6. Are catch-up contributions included in actual deferral percentage (ADP) testing?

    Though the Internal Revenue Service (IRS) carefully scrutinizes the contributions of highly compensated employees (HCEs) ... Read Full Answer >>

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