How Will Your Retirement Expenses Get Paid?

How Will Your Retirement Expenses Get Paid?

by Leslie Freeland, October 5, 2018

Your Savings? Your investments? Your family?

Life is busy. Between working, chasing your career dreams, buying a home and raising a family, there’s surprisingly little time to really think about what happens later on once you stop working and head into retirement. Retirement should be a time when you can continue to do what you want to do, relax, and not worry about the bottom line.

The good news is, when you do plan ahead, you can set yourself up to have enough money to pay for your expenses and to live comfortably. With a little foresight, you’ll be able to live without financial stress.

Whatever your retirement will look like, whether you want to travel, spoil the grandkids, immerse yourself into your favorite hobbies, or all of the above, it’s going to cost something. And while it’s tough to figure out an exact number, you can make some estimates that will help you see what you’ll need to have available to cover your expenses.

And once you have that number in mind, there are some steps you can take to make sure that money is there.

Some of Your Options

Sometimes it’s the simplest methods that work to provide a good retirement:

  • Personal Savings: Having a positive attitude when it comes to saving a portion of your income can be a huge help. It’s good to have a method such as “I’m going to spend X% amount on my home/food/leisure, and X% will go into savings from my paycheck each month.” A solid rule is 20% saved, but life throws a lot of unexpected costs at you, and this may not be realistic.
  • Family & Friends: Reliable support from loved ones is a common way many people fund their retirement. But let’s face it, other people have their own needs too, and even if you think you can depend on your children to pay your expenses once you retire, you can’t know how things will be for them at that point. Family and friends may work in a pinch, but it’s not a solid method for long-term planning.
  • Permanent Life Insurance: Many people think of life insurance only as something you pay into all your life, then it pays out and helps your loved ones when you die. There are, however, more flexible types of life insurance that help you access your money while you’re alive and able to enjoy it. Permanent life insurance is one of these.

So how does it work?

Cash Value

A permanent life insurance policy is just that, permanent. Unless you cancel it, it will cover you throughout your life.

Compare this to term life insurance, which only covers a specific number of years. Once the term ends, the insurance protection is gone.

Going permanent, however, means seeing more value in the long run. Your premiums will be a little more, but the upside is that you’ll be growing more ‘cash value’ as you go. You can also use this value as collateral, meaning you can borrow against this amount without being taxed.

This is why, as you build cash value in a permanent life insurance policy, you are building up an asset that can help you make financial decisions later on down the line. You are building something real. Regularly paying your premiums as you go through life means that you’ll have life insurance, and at the same time, be building up a chunk of cash you can use in your retirement.


What you’re looking for is to ensure you can retire in the way you need to, with the cash to pay the expenses on your own terms. You may raise a family and give them everything, all the while expecting that they will cover you later on.

However, there is always the risk that the conditions will not be right when you need them to be.

This is why the best way to plan is never to assume, but rather to work toward your own independence. This means having a solid, visible investment that grows with you as you build it. Permanent life insurance, as a part of your overall financial planning, can act as a supplement to fund your retirement plans, together with your other income sources.

Most importantly, thinking permanently helps you plan out long-term and set goals. It’ll be a great help to family members too, knowing that you have solid planning in front of you so they can focus on their own situations without the burden of paying your retirement expenses.

After all, when the time comes to retire, whatever you decide to do, you need to feel it’s well earned. Consider what a permanent life insurance policy could do for your retirement plans, today.




Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn More’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’

*Term life insurance will eventually expire. Permanent life insurance will not.**Loans borrowed from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim.

This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Consult with financial planning, tax, and legal advisors to determine if an annuity is suitable in your financial situation. Annuity policies are products of the insurance industry, are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value.

Always read any proposed annuity contract carefully and be sure all of your questions are clearly answered before making any purchase.


Leslie Freeland

Leslie Freeland

Find her at LinkedIn
Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams with informational articles.
Leslie Freeland