What can be a consequence of not having a retirement plan?

Not having a retirement plan can lead to potential financial insecurity in later years. This is because without a structured approach to saving and investing for retirement, individuals may find themselves underprepared for the financial needs that arise during that period of life. As people age, their income often declines due to retirement from full-time work, yet expenses such as healthcare can increase. Without a retirement plan, individuals may lack sufficient savings, leading to a struggle to meet basic living expenses, maintain their desired lifestyle, or cover unexpected costs.

In contrast, having a retirement plan helps ensure that individuals set aside enough resources over time to secure a stable financial future. It provides a roadmap to achieve financial goals and manage risks associated with aging, which includes planning for both known expenses and potential emergencies. Proper planning can alleviate anxiety about finances in retirement and increase the chances of maintaining financial independence.

The other options illustrate benefits or outcomes that are generally not linked to the absence of a retirement plan. Increased disposable income and greater investment diversification typically result from sound financial planning, not from a lack of it. Similarly, guaranteed income for life is usually a feature of solid retirement planning, often achieved through annuities or systematic payout strategies, and would not be attainable without a proper retirement plan.