Receiving a personal injury settlement can provide financial support at an important point in life. For many people, however, the settlement is not meant to cover only the next few months. It may need to provide financial support for many years before retirement.
The years between receiving a settlement and reaching retirement can bring many financial decisions. A person may need to manage regular living expenses, medical care, housing, transportation, family responsibilities, and changes in employment. At the same time, there may be a need to prepare for retirement and future care.
This period can be easier to manage when settlement planning looks beyond immediate expenses. The goal is to create a financial plan that fits the person’s needs today while also preparing for the years ahead.
Start With a Clear Picture of Your Financial Needs
The first step is to understand how much money is needed to maintain daily life.
After an injury, expenses may look different from what they were before. Medical care may continue, work income may have changed, and transportation or housing costs may have increased.
Start by reviewing regular expenses such as:
- Housing
- Utilities
- Food
- Transportation
- Insurance
- Medical care
- Prescription costs
- Personal care
- Family expenses
- Home maintenance
- Education costs
Then look at expenses that may occur less often. These can include medical equipment, vehicle repairs, home modifications, major medical procedures, or other large purchases.
Knowing these costs can help create a more practical settlement plan.
Think About How Long the Settlement Needs to Last
The years between settlement and retirement can be longer than they first appear.
Someone who receives a settlement at age 45 may need the funds to support them for two decades or more before retirement. Someone who receives compensation at age 55 may have a shorter period to plan for, but retirement may be much closer.
Age is only one part of the picture.
The plan should also consider health, ability to work, expected income, family responsibilities, medical needs, and future expenses.
A settlement should not be viewed simply as money available to spend. It may need to serve as part of a long-term financial plan.
Consider Your Current Ability to Work
An injury can change a person’s ability to work.
Some people may return to their previous job. Others may need reduced hours, a different position, retraining, or may no longer be able to work in the same way.
A change in employment can affect income, health insurance, retirement savings, and other benefits.
When planning the years between settlement and retirement, consider how much employment income may be available and how long you expect to work.
If work income is reduced, settlement funds may need to provide additional support.
This is one reason Personal Injury Settlement planning should look at the person’s complete financial situation instead of focusing only on the settlement amount.
Consider a Structured Settlement
A Structured Settlement can provide scheduled payments over time instead of providing all settlement funds at once.
For some claimants, regular payments can make monthly budgeting easier. A payment schedule may also help provide income during specific years before retirement.
For example, payments may be arranged to help with regular living expenses, medical costs, or other planned needs.
A Structured Settlement may also include payments at specific times for larger expenses.
The payment structure should be based on the person’s financial needs and long-term goals.
Gleason Settlements helps individuals and families review Structured Settlement options as part of the settlement planning process.
Look at Guaranteed Payments
Guaranteed Payments can provide another way to plan for future financial needs.
Regular payments may help a person manage expenses during the years before retirement. They can provide a predictable source of settlement income that can be included in a household budget.
This can be useful for someone who has reduced employment income after an injury.
Guaranteed Payments may also be planned around future needs, such as medical expenses, housing costs, education, or other major financial responsibilities.
The goal is to create a payment schedule that supports the claimant’s actual needs.
Do Not Ignore Retirement Planning
A settlement received before retirement can create an important question: How much money will be needed after employment ends?
Retirement planning should be considered alongside settlement planning.
A person may need to think about:
- Expected retirement age
- Employment income
- Retirement savings
- Social Security or other benefits
- Medical expenses
- Housing costs
- Long-term care
- Family responsibilities
- Settlement income
An injury may also change retirement plans. Someone who expected to work until age 65 may need to stop earlier because of physical limitations.
If retirement comes sooner than expected, the settlement may need to support a longer period without employment income.
Plan for Medical Costs Before and After Retirement
Medical expenses can become one of the largest concerns during the years between settlement and retirement.
A person may require continued treatment, rehabilitation, medication, medical equipment, or personal assistance.
Some injuries also create long-term care needs.
Planning for these costs early can help prevent medical expenses from taking up funds that were intended for other needs.
Physical Injury Settlements should take ongoing medical and care needs into account when building a long-term financial plan.
The plan should also consider how medical expenses may change after retirement.
Think About Medical Equipment
Medical equipment can create both immediate and future expenses.
A person may need a wheelchair, mobility equipment, hospital bed, bathroom equipment, communication equipment, or other items.
Equipment may need maintenance, repair, or replacement.
A settlement plan should consider the expected life of important equipment and the cost of replacing it.
This is especially important for people whose injuries require long-term use of medical equipment.
Consider Housing Costs
Housing can be a major part of a person’s financial plan between settlement and retirement.
After an injury, a person may need to modify their current home or move to a more accessible property.
Potential costs can include:
- Rent or mortgage payments
- Property taxes
- Home insurance
- Utilities
- Repairs
- Maintenance
- Accessibility modifications
- Home care
A person may also want to pay off a mortgage or make other housing changes before retirement.
These decisions should be reviewed carefully because using a large portion of settlement funds for housing may affect the money available for future medical and living expenses.
Plan for Transportation
Transportation needs can change after an injury.
A person may need a modified vehicle, additional transportation services, or regular rides to medical appointments.
If driving becomes difficult or impossible, transportation may become an ongoing expense.
These costs should be included in the long-term budget.
Transportation planning can also become more important as a person approaches retirement, especially if employment income is no longer available to help cover these expenses.
Consider Family Responsibilities
Settlement funds may also need to support family responsibilities.
A claimant may have children, a spouse, or other family members who depend on their income.
Parents may need to plan for education costs, childcare, housing, and other family expenses.
A settlement may also need to support a child who has long-term medical or care needs.
Family responsibilities should be included in the settlement plan rather than treated as separate from the claimant’s financial needs.
Think About Special Needs Trust Planning
Some people receiving settlements also receive government benefits.
A settlement can affect eligibility for certain needs-based programs, depending on the person’s circumstances and the rules of the program.
A Special Needs Trust may be considered in certain situations.
A Special Needs Trust can allow settlement funds to be used for supplemental needs while helping protect eligibility for certain government benefits when properly established and managed.
This type of planning requires careful review.
Gleason Settlements can include Special Needs Trust strategies in settlement planning and work with the appropriate professionals when this type of planning is needed.
Review Lump Sum Options Carefully
Some claimants may receive or consider receiving settlement funds as a lump sum.
A lump sum can provide access to a large amount of money. It can also require careful budgeting and management over many years.
Before using a large amount of settlement funds, consider how the decision may affect future needs.
Ask:
- How much is needed for immediate expenses?
- How much may be needed for future medical care?
- How much is needed for retirement?
- What family responsibilities must be covered?
- How long must the settlement last?
- Could regular payments provide better budgeting support?
The answer will be different for each person.
Plan for Changes in Your Needs
Financial needs can change between settlement and retirement.
Medical needs may increase. Employment income may change. Children may become independent. Housing needs may change. Retirement may come sooner than expected.
A settlement plan should have enough flexibility to account for these changes.
Regularly reviewing the plan can help identify problems before they become major financial concerns.
This does not mean changing the settlement terms every time circumstances change. It means reviewing the overall financial picture and making responsible decisions with the resources available.
Consider Long Term Care
Long-term care can become a significant expense for some people.
A serious injury may create a need for personal assistance, home care, assisted living, or other forms of support.
Long-term care planning should be considered before retirement, especially when an injury has created permanent changes in daily life.
A settlement plan can include estimated care costs and consider how Guaranteed Payments or other settlement arrangements may help provide financial support.
Work With Your Legal and Financial Team
Settlement planning often involves more than one professional.
An attorney may focus on the legal side of the settlement. A financial professional may help with investments or retirement planning. A tax professional may address tax questions.
A Certified Structured Settlement Consultant can help explain structured settlement and payment options as part of this larger team.
Gleason Settlements works with individuals, families, claimants, and Litigation Attorneys across the country.
Susan Gleason, CSSC, and Rachelle Gleason, CSSC, provide settlement planning support based on each client’s financial situation and future needs.
How Gleason Settlements Can Help
Gleason Settlements provides settlement planning support for people who need to think about life after a personal or physical injury.
Services and planning areas include:
Structured Settlements
Payment schedules designed around the claimant’s current and future financial needs.
Guaranteed Payments
Regular settlement payments that can help support budgeting and long-term financial planning.
Personal Injury Settlements
Planning for financial needs that can arise after a personal injury, including medical care, housing, transportation, and family responsibilities.
Physical Injury Settlements
Planning that takes ongoing physical limitations, medical treatment, equipment, and care needs into account.
Special Needs Trust Strategies
Planning support for situations where government benefits and long-term care needs are part of the settlement picture.
Claimant Support
Helping individuals understand settlement payment choices and consider their financial needs before making major decisions.
Attorney Support
Working with attorneys and Litigation Attorneys to help clients review settlement options and future financial concerns.
Long-Term Financial Planning
Looking at the years between the settlement, retirement, and the financial needs that may continue after employment ends.
Questions to Ask Before Making Settlement Decisions
Before finalizing a settlement plan, claimants may want to ask:
- How much will I need each month?
- How long will the settlement need to support me?
- Can I continue working until my planned retirement age?
- Could my injury reduce my future income?
- What medical expenses may continue?
- Will I need medical equipment?
- Could I need long-term care?
- Should I consider a Structured Settlement?
- Could Guaranteed Payments help with my future budget?
- Would a lump sum work for my situation?
- Could my settlement affect government benefits?
- Should a Special Needs Trust be considered?
- What housing costs should I plan for?
- What transportation costs may arise?
- How much money will I need during retirement?
These questions can help create a more complete picture before major financial decisions are made.
Start Planning Before Retirement Gets Close
Waiting until retirement is only a few years away may make financial planning more difficult.
The earlier a person reviews their settlement, income, expenses, medical needs, and retirement goals, the more time there may be to make thoughtful financial decisions.
For someone who received a settlement many years before retirement, regular reviews can also help keep the plan aligned with changing circumstances.
Settlement planning is not only about what happens immediately after a case ends. It can be part of a much longer financial process.
Final Thoughts
The years between an injury settlement and retirement can bring many financial decisions. A settlement may need to support daily living costs, medical care, housing, transportation, family responsibilities, and future retirement needs.
Structured Settlements and Guaranteed Payments may provide scheduled financial support. Special Needs Trust planning may be relevant for people receiving certain government benefits. Personal Injury and Physical Injury Settlement planning can help account for medical care, equipment, housing, transportation, and long-term care.
Gleason Settlements works with individuals, families, claimants, and attorneys to help review these needs and build settlement plans around each person’s situation.
Susan Gleason, CSSC, and Rachelle Gleason, CSSC, bring a family-based approach to settlement planning, with support for Structured Settlements, Guaranteed Payments, Personal Injury Settlements, Physical Injury Settlements, Special Needs Trust strategies, and long-term financial planning.
Planning early can help make the years between settlement and retirement more manageable and can give claimants a clearer financial path for the years ahead.
