Planning for a secure future means being prepared for unexpected life events. We’re here to help with steps you can take to stay financially protected.
Prepare and handle financial challenges
What steps can I take to recover from financial setbacks?
- Create a plan. This can range from setting a budget and adjusting savings, to finding additional income. Take time to comprehend the impact, then consult professionals who can guide you.
- Seek advice. Your support network will be important as you navigate through a difficult time.
- Take emotion out of the equation. You may find you’re able to stick to your plans when emotions don’t drive your decision making.
- Organize important documents. Update legal and financial documents, and make sure your beneficiaries are up to date.
Is there anything I can do now to prepare in the case of a financial setback?
You can help diminish the impacts to your savings simply by setting aside extra money for unexpected emergencies.
In fact, a study done in 2020 found 97% of people who experienced a financial setback went on to create an emergency savings fund. And, 64% had enough cash reserve to cover six or more months of expenses.1
What can you do now? Start an emergency fund and aim to save at least $1,000.
Specific financial challenges you may face
What if I lose my job?
Losing your job can really pack a punch, but having the right attitude moving forward is everything.
Consider how you can:
- Maintain an income stream and manage your cash flow through unemployment compensation, budgeting, and temporary work.
- Take care of your mental and physical health.
- Look for new opportunities by developing a job search strategy.
How can I prepare for a critical illness diagnosis?
When you or someone you love is faced with a difficult diagnosis, you may feel emotional.
Juggling financial obligations during difficult times isn’t easy, but it’s especially important.
If this happens, you should:
- Prepare for expenses tied directly to treatment and care, as well as indirect costs such as lost pay and transportation to and from treatments.
- Put a plan in place to take care of daily responsibilities if you’re unable, like taking the kids to school or going grocery shopping. This may require hiring help.
What should I consider if I’m widowed or divorced?
If you lost a spouse or partner through death or divorce, there are a number of things you can do to stay focused on your future financial needs when your relationship status changes.
In this situation, you should:
- Organize important documents—vital records, financial information, home and property paperwork, and insurance records.
- Ensure your beneficiary information is up to date on your insurance policies, retirement accounts, and estate planning documents.
- Try not to make any major financial decisions until you have had time to think through and process the changes happening in your life.
- Consult with a financial professional for assistance.
Resources available to you
We’re here to help, with tools and resources.
Start with our Financial Wellness Assessment.This tool asks you a few questions about your current financial situation so you can see where you stand and better understand next steps for your financial planning.
You may have access to the budgeting tool.With this tool, you can view all your financial accounts in one place‚Äîfrom savings to checking, investments to retirement—making it easier to manage your money.
To access these tools, log in to your account at retirement.prudential.com.Click the My Financial Life tab at the top of the screen, then the Tools tab.
This material is intended to provide information only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing this information, Prudential Retirement® is not acting as your fiduciary as defined by the Department of Labor or otherwise. If you need investment advice, please consult with a qualified professional.
Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates. PRIAC is a Prudential Financial company.
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