In the event that you become disabled, you face the risk of losing your job and a source of steady income. When this happens, contributions to your retirement plan or your 401(k) plan will stop as well. You will be solely responsible for your retirement funds in this case. Therefore, you need to be more aware on the negative consequences of being disabled, so you can prepare for it early on.
In a paper by the Council for Disability Awareness, it has been stated that up to three in a group of ten workers could suffer from grave disabilities even before reaching retirement. This statistics has been found to be very possible in the workforce of today. Of course, these disabled workers will be able to receive the right compensations and benefits, but the fact that their income will stop is often overlooked in these instances.
It is unfortunate that almost 90% of the workers surveyed by CDA tend to miscalculate their risks of suffering from disabilities later on. This is why the necessary financial planning strategies are often not given due importance.
Financial planning is therefore very important, so that even with the loss of income due to certain disabilities, workers can still enjoy a comfortable retirement.
Related posts: