older female worker with arms crossed and confident expression

You know people who've said this: "I'll work till I'm 80!" or "I'll never retire." You hope for their sake, at least, they can work as long as they want. We all want to work as long as we want. But that's not up to us. Call it chance, fate, bad luck, divine plan, interesting circumstances, but we can only control so much about when we retire. What can you do? We caught up with Mike Heard, president of CNO Financial's Worksite Division and he gave us four key steps to consider.

Heard is president of the worksite division of CNO Financial Group and is responsible for the sales and operations of the company's worksite business. From April 2017 to January 2020, he served as president of CNO's Washington National business, which offers a suite of supplemental health and life insurance products and administrative technology, including an enrollment platform to help employers administer their benefits programs.

BenefitsPRO: What have you seen as far as early or unexpected retirement occurring?

Mike Heard: COVID-19 has impacted our daily lives and may have even changed retirement planning. From layoffs and furloughs to pay cuts and early retirement options, there are a number of ways that can prompt an unexpected retirement. And while unexpected and early retirement is more common than you might think, it can throw you off course.

BenefitsPRO: Is there anything one can do, especially during these uncertain times when any decision seems to have an extra large impact on the future?

Yes. To avoid any sleepless nights, here are four key steps to ensure you are financially prepared for your next life milestone.

1. Snapshot your finances: Before making any rash decisions, take a complete inventory of your finances, including assets, debts and interest rates; income; and expenses. Create a realistic monthly budget that outlines how much cash you'll need to cover your expenses. Also, you may want to also think about how your expenses might be changing based on how your work or personal situation has evolved this year. Then, talk to your financial advisor for expert insight and advice.

2. Don't make rash decisions: Unfortunately, I've heard plenty of stories from our clients about how COVID-19 has forced employees into taking early retirement.

If you're faced with such a scenario, take a moment to evaluate. Don't make drastic moves, especially regarding your finances. For many, this might be right time to find your "Second Act" in retirement, pursue a different interest or hobby, or even a new job.

3. Safeguard your health care – against high costs: The COVID-19 pandemic may have just amplified the need for supplemental health insurance. In the past three months, millions have lost their jobs and their health insurance as a consequence.

Additionally, for many battling COVID-19, they may have realized gaps in their current health insurance. Many expenses like coinsurance, deductibles, transportation needs, child or eldercare, and non-prescription medicines and supplies can build up over time. Supplemental health products, including a hospital indemnity product, can help cover some of those costs, and these should be a part of your retirement planning. Many supplemental products are portable, which means if an employee faces an unexpected retirement or is furloughed, that supplemental health remains with them wherever they go.

Additionally, consider a Return-on-Premium feature to make your health insurance program a potential savings vehicle should you never need to utilize the actual benefits. This could add additional income down the road at a later stage in life.

4. Provide and protect with life insurance: No matter what stage of life you are in, it's never too late to add life insurance to your financial retirement portfolio. Consider a product with a living-benefits rider to help not just with cash-value or insurance coverage, but also for unforeseen critical conditions or illnesses where you could utilize a meaningful portion of the face amount of the life insurance contract to assist with medical needs. There are a lot of reasons to have life insurance, including helping with your retirement planning, with cash benefits, replacing lost income, funding college education, paying off debts, as well as and paying for final expenses.

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4 tips for handling an early or unexpected retirement

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