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.

RELATED TERMS
  1. Other Post-Retirement Benefits

    Benefits, other than pension distributions, paid to employees ...
  2. Phased Retirement

    A broad range of employment arrangements that allow an employee ...
  3. Retirement Planning

    The process of determining retirement income goals and the actions ...
  4. 419(e) Welfare Benefit Plans

    A type of employer-sponsored employee welfare benefit plan. 419(e) ...
  5. Retirement Income Certified Professional ...

    A professional designation for experienced financial professionals ...
  6. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
Related Articles
  1. Professionals

    Post-Retirement Obligations

    CFA Level 1 - Post-Retirement Obligations. Describes the accounting treatments for the remaining post-retirement obligations, including the types of costs incurred by such liabilities.
  2. Retirement

    Top Signs You Aren’t Ready to Retire Yet

    Think you are prepared to retire? These warning signs may indicate otherwise.
  3. Options & Futures

    Common Risks That Can Ruin Your Retirement

    These unexpected bumps can sideline your post-work plans and prevent you from riding out your assets.
  4. Retirement

    5 Steps To A Retirement Plan

    These considerations will help you make a realistic and thorough retirement plan.
  5. Financial Advisors

    Retirement Savings: How Much is Enough?

    Sure, you can never save too much for retirement, but just how much is enough?
  6. Retirement

    6 Signs You Are OK to Retire

    As you approach retirement age, there are a number of factors to consider before deciding on when you want to retire. Here are six signs to look at.
  7. Financial Advisors

    Ready to Retire? Ask Yourself these 7 Questions

    Feeling ready for retiring? Before you make the jump, ask yourselves these questions.
  8. Investing Basics

    Closing In On Retirement? Read These Tips

    If you're within 10 years of retiring, you and your financial planner should heed these essential tips.
  9. Professionals

    Types of Retirement Plans

    Types of Retirement Plans
  10. Financial Advisors

    Retirement's Evolution: How to Be Prepared

    For many, retirement might not be the full stoppage of work and living a life of leisure but rather one of slowly phasing out of the workforce.
RELATED FAQS
  1. What does a sample plan using the 4% retirement rule look like?

    Discover how the 4% retirement rule can work as part of a plan to achieve increasing retirement income if investments perform ... Read Answer >>
  2. How soon should I start saving for retirement?

    Learn about the basics of retirement planning and the reasons why it is so advantageous for individuals to start saving for ... Read Answer >>
  3. What are the best ways to plan for retirement?

    Learn the basic steps to creating a solid retirement plan that can support you and your family, and find out how to manage ... Read Answer >>
  4. How much of my total assets should I be keeping in my money market account?

    Investing a portion of total assets in a cash position such as a money market account provides investors access to funds ... Read Answer >>
  5. How do I retire?

    When considering how to plan for retirement, firstly think about the age at which you want to retire and the lifestyle you ... Read Answer >>
  6. How can I increase my standard of living in my retirement years?

    Find out how to plan for retirement, target a standard of living and improve your financial situation once you've already ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center