7 Ways Retirement Plans Fail

By Brent Meyer — SafeMoney.com Founder & Editor Reviewed by Licensed Financial Professionals  |  SafeMoney.com — Trusted Since 2011  |  Updated Regularly Quick Answer: Discover 7 common pitfalls that can derail your retirement plans. Learn how to secure your future with safe money alternatives today! Editor’s Note: This is Part 2 of a two-part series on different ways that a retirement plan can go bust. You can find Part 1 of this two-part series here . In many ways, retirement is like a puzzle. It’s a matter of fitting different pieces together . You probably know what you want your retirement lifestyle to be. The next step is making that vision real. You put together a financial plan to make things happen. But just planning for retirement isn’t a guaranteed formula for success. We also have to stick to the plan and, at times, revisit it to see if any adjustments should be made. After all, life throws curveballs and life situations change. Even so, there are many situations that can throw a retirement plan off balance . Those variables can vary, from suddenly finding oneself as a surviving spouse to having personal health decline or taking on the responsibility of caregiver for parents. While it isn’t a complete solution, understanding some situations that might put a financial plan on the rocks is a good starting point. Retirement Plan-Busting Moves to Remember  Here are some personal circumstances that could make a retirement plan go off-kilter. Going Solo It’s difficult enough to lose your loved one. Add to that the loss of their retirement income and you could be put in a precarious financial position when you are already at an emotional low. It’s likely that your retirement plan hinges on the combination of you and your spouse’s retirement income. But according to a recent National Center for Health Statistics report, at age 65 men are expected to live 18 more years while women age 65 are expected to live for 20.6 more years. One of you will likely live past the other, so what happens when that second Social Security check isn’t flowing in every month and the surviving spouse only gets the higher of the two? And if you still have your home, what about tasks that the departed spouse did that now have to be outsourced and paid for? Lawn or pool maintenance and house cleaning are a few examples. Most critically, did the departed spouse manage the money? That’s something you can clear up immediately… making sure both sp