Protect Your Family: Avoid The Big 3 Retirement Risks

Discover how step 5 of building your retirement master plan can help you leave a lasting legacy while avoiding the big 3 retirement risks.

When most people think about retirement planning, they picture saving money, managing investments, and planning income. But retirement is about more than how you live—it’s also about what you leave behind. And as I often remind my clients, it’s not what you leave them, it’s how you leave them that counts.

This is Step 5 in creating your retirement master plan: Leave. This final step ensures that the legacy you leave for your loved ones is intentional, meaningful, and well-prepared.

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The Three Big Retirement Risks

Before we talk about estate documents, let’s step back and consider the risks that could derail your retirement if you don’t prepare for them. I call these the big three retirement risks:

1. Living too long – Longevity sounds like a blessing, but it’s also the great risk multiplier. The longer you live, the more time inflation, market volatility, and health care costs have to erode your nest egg. Planning for longevity means stress-testing your retirement plan to make sure it lasts, not just for the “average,” but well beyond.
2. Dying too soon – The flip side of longevity is the possibility that you don’t live as long as you expect. If that happens, what will your spouse or loved ones face financially? Choices around Social Security, pensions, and survivor benefits often come down to one-time, permanent decisions. Make sure you’re considering how your choices will affect the person you might leave behind.
3. Failing health – A long retirement increases the odds of needing significant health care or long-term care. Whether you choose insurance or a self-funding strategy, you need a long-term care plan. It’s not just about the money—it’s about who will help you, where care will happen, and how those decisions align with your values.

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Estate Planning: Protect and Pass On

Once you’ve planned for the risks, you can move to estate planning, which I like to think of as your legacy protection plan. This has two main goals:

1. Protect yourself and your spouse. Estate planning isn’t just about what happens after you’re gone. Powers of attorney for health care and finances, health care directives, and living wills are about protecting you while you’re still alive but may not be able to act for yourself.
2. Make inheritance easy and tax-efficient. When you’re no longer here, the goal is to simplify the process for your heirs and minimize taxes. That usually involves a will and often a trust. But don’t overlook the importance of beneficiary designations—most retirement accounts, life insurance policies, and even bank accounts pass outside your will or trust. If your beneficiary forms don’t match your overall plan, your hard work can unravel quickly.

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It’s About More Than Money

Leaving a legacy isn’t just about dollars—it’s about leaving clarity, direction, and peace of mind. Too many families are left to navigate confusion, disputes, and court battles because the planning wasn’t done ahead of time. By planning for risks, creating the right documents, and making thoughtful decisions, you can leave behind more than just assets—you can leave behind confidence, stability, and a sense of care for those you love.

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Additional Links:

• FiveStepRetirementPlan.com – Free video course to create your retirement master plan.
• JeremyKeil.com – Learn more about my book Retire Today and find links to purchase.
• Leave a Legacy, Not a Mess – Estate Planning Guide (2025) with David Edey<