When it comes time for retirement there are a lot of financial situations that can disrupt your smooth sailing into the sunset. The best thing you can do is educate yourself on the things that can affect your retirement the most and plan accordingly. Below is a list of seven things that can affect your bottom line when it comes time for you to retire.

Pension plans can change

Obviously your employers cannot take away benefits you have already earned, but they can reduce your benefits going forward. Many employees do not realize the change in their benefits and end up working longer to make up for losses.

Switching jobs

Sometimes you cannot help changing jobs. Switching jobs often can affect traditional pension plans. A traditional pension plan usually means that an employee contributes to your 401(k) but does not have to pay it to you until you have worked for the company for five years. Understand your employer’s contribution and exactly what you need to do to get that contribution. Many companies only match what you contribute after five years.

Leaving money behind

If you do switch jobs, do not forget to roll over your 401(k) to your new job. Many employees see benefit in leaving their money in their old 401(k) accounts, experts are divided on what is better. The important is to not forget about it.

Your health insurance benefits may diminish after retirement

Health insurance is one of the top expenses for companies today, which is probably why many companies are phasing out health insurances benefits for retirees. Companies that are not phasing out retirees’ health insurance benefits are increasing the costs retirees have to pay. Bottom line, retirees need to save more to cover healthcare costs.

Social Security benefits are not what they use to be

Social Security benefits are changing almost yearly. Recently, the amount you can get at age 62 has been changed to a lesser amount in hopes of getting people to collect at an older age.

Lump-sum distribution

A lump-sum distribution from a pension plan can be tempting. If you are planning on investing that money, are you sure of the investment?

Early retirement may cut into your bottom line

Yes it would be nice to retire earlier, but retiring early can affect your pension benefits. Retiring up to three years earlier can significantly reduce your pension benefits. If you are considering retiring early, weigh your options and determine how much you could be losing by retiring early.

What can you do?

If you feel like your retirement could be in danger from any of these things then you want to have a back-up plan. A good back-up plan for seniors is a Reverse Mortgage. A Reverse Mortgage is for homeowners 62 and older. It gives seniors the ability to access the equity built up in their home. The current loan on the home is paid off and if there is any remaining equity, seniors receive that money in tax-free* cash.

If you are interested in learning more about a Reverse Mortgage or if you want to get started on the process, you contact One Reverse Mortgage at (800)442-6828. Our licensed professionals help clients like you everyday achieve their financial goals.


Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest reverse-only mortgage lender in America.

*Please consult with your financial advisor.