Have you pre-planned for a successful retirement as the pages on your calendar was turned? Are you financially ready for the next chapter in life?
The Facts of Reaching Retirement
Social Security is viewed as a steady income by many people. Retirees need to consider health care, household maintenance, family emergencies, travel, and leisure activities as unforeseen expenditures. Senior Living such as Assisted, Memory Assisted or Skilled Care could require more finances than Social Security often provides.
Employers in past years provided a retirement pension. Fewer companies now offer this benefit. Only half of the employees who are offered a retirement plan take advantage of it. Northwestern Mutual reports 78% of Americans are concerned about not having enough money in retirement. The survey also shows 21% have nothing at all saved for the future. The average monthly Social Security payment in 2017 was less than $1,500. If you are not budgeting for retirement, expect challenges later in life.
Consider the Costs of Retirement
People are living longer. The Statistics Portal states the current average life expectancy rate is 81 years for women and 77 years for men. The typical American does not plan to live into their late eighties or early nineties. It is not uncommon to live approximately eight years past what is projected. Whatever your age now, start planning for life after work.
It is difficult to relinquish one’s current lifestyle. Plans should be made to maintain the level of lifestyle you wish to continue. There may even come a time when less space and fewer belongings are desirable. Start to downsize now and consider the difference between “need” and “want.”
Get the Most Out of Your Social Security Benefits
Learn the available Social Security benefits and maximize them. Most Seniors are not aware of how these benefits are best used. Social Security was not designed to be the source of income. Lack of understanding various Social Security options such as the Spousal Benefit could have adverse effects on retirement plans, particularly if there is no retirement budgeting in place. Be informed to best decide when to start drawing on this benefit.
Know Your Health Insurance Options
Healthcare is a major consideration when leaving employment. Have you studied options for healthcare during retirement years? If not, start now. Healthcare costs in retirement could be astronomical.
Medicare begins at the age of 65. Do not delay enrolling within three months before or after your 65th birthday or you will incur a penalty premium every year for the rest of your life. Options exist with both Medicare and Medicare Advantage plans. Do research to learn which plan best suits your needs. There are advantages and disadvantages to each.
Medicare will not cover all medical costs. Medicare will only cover short-term periods such as rehab. Find supplemental insurance to pay for uncovered Medicare expenses.
Talk to a Good Financial Advisor
A financial advisor should be able to ease uncertainties by mapping out your financial future, optimizing your retirement income.
Pay Attention to Senior Living Expenses
The costs of Senior Living have soared in recent years. Costs in Assisted Living may range from $4000 to $7000 or more per month. Contact a Bridge to Better Living office to visit about social, medical, physical and financial situations to facilitate a continued quality of life when choosing a Senior Living option.
Bridge to Better Living wants your transition into retirement to be stress-free. Our Transition Consultants help find Senior Living Communities meeting your financial needs, as well as your physical, social, and medical. If you are considering retirement and looking for your next home, contact Bridge to Better Living to explore the available options. We are a free service and firmly believe in Placement with Passion.