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HerMoney with Jean Chatzky

Ep 523: The Hidden Retirement Risk: What Happens To Your Money When You Can No Longer Manage It?

HerMoney with Jean Chatzky

Jean Chatzky Her Money

Investing, Business

4.71.5K Ratings

🗓️ 15 April 2026

⏱️ 35 minutes

🧾️ Download transcript

Summary

You’ve planned for retirement. You’ve built your savings, mapped out your Social Security strategy, and thought through market risks. But what happens if one day, you can’t manage your money at all? It’s an uncomfortable question – and one many people avoid. Yet, research shows that cognitive decline can quietly undermine financial decision-making, often earlier than we expect, and with serious consequences.  On this special episode of HerMoney, sponsored by LIMRA, Dr. Chris Heye, LIMRA Retirement Income Institute Fellow and CEO of Whealthcare Planning and Wealthcare Solutions, explains why health risks – especially cognitive decline – may be one of the biggest blind spots in retirement planning today. Then, Erin Gilmore Smith, Head of Estate Planning for Edelman Financial Engines, joins us to share practical steps you can take now to protect your finances, your family, and your future self.  In this episode, they’ll highlight: Why health risks – and especially cognitive decline – might matter more than the markets How cognitive decline shows up in our finances, before we realize we have it Why women are more challenged when it comes to the risk of cognitive decline – and how we can protect ourselves Protected income can help create greater stability in retirement, especially in the face of potential cognitive decline. If you’re curious and want to dig deeper, this resource from LIMRA can help: Protect Your Retirement From Cognitive Decline: The Link Between Cognitive Health and Financial Security Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:33.0

But unfortunately for many of us, as we get older, our executive functions starts to deteriorate.

0:38.9

One of the first areas that shows up is in sound financial decision making.

0:43.8

And there have been numerous studies now that suggest that, you know, four, six, or even eight years before a diagnosis of dementia, we already start seeing financial mistakes.

0:54.9

So what protected income does is kind of reduces that cognitive load.

0:59.3

And what I like to call it's almost like cognitive insurance.

1:02.3

Like it helps protect you from making bad decisions in the sense that you have fewer

1:06.5

to make and you have fewer opportunities to go in and start messing around with things

1:10.7

that you shouldn't be messing around with.

1:15.6

Hey, everyone. Welcome to Hermione. I'm Gene Chatsky. You have done the hard work of planning for retirement. You've saved, you've invested, you've mapped out your social security strategy, but there's one risk that often gets

1:29.5

overlooked, and it has nothing to do with the markets. It's a risk that at some point, managing

1:36.6

your money may simply become too difficult. A new research paper from Limra highlights a growing reality.

1:45.6

Health risks are becoming a major factor in retirement security, and one of the most significant

1:52.2

is cognitive decline.

1:55.1

It's more common than many of us realize.

1:57.6

Nearly 30% of adults over age 65 are experiencing some level of diminished cognitive

2:04.8

capacity and that can be everything from mild impairment to full-blown dementia and here's the part

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