Have you ever thought of how much money you think you will need for retirement? With advances in modern medical technology, people are living longer lives. The average life expectancy in the US is 81.2 years for women and 76.4 years for men. This increase in longevity means that retirement could last 30 years or more.
A longer retirement means you will need more savings. As commercials illustrate, we should be like squirrels storing nuts for the winter. However, with mortgages, college tuitions and various other financial obligations looming, retirement savings can seem like a luxury to many.
Here are a few expert opinions to make your retirement savings go further and cover the cost of long term care at a retirement community:
Don’t wait until you are approaching retirement to plan for your future. Start saving and contributing to your retirement during your younger years. Decades of saving and compound interest can ensure your money will take you through retirement.
Rather than spending money for instant gratification, create a savings for the rainy days ahead. Successful retirement planning begins when you are still generating a regular income. Making sacrifices and forgoing small luxury items today can lead to a better retirement.
It is vital to get ahead of debt in order to create a savings. Paying just the minimum balance on a credit card each month can leave you paying more in interest than the original balance. Consider using a personal loan to consolidate debt into a fixed monthly payment at a lower rate. When paying off credit cards, start by paying down the higher interest cards. Avoid using retirement accounts to pay off debt as taking the money out early can lead to penalties.
Not only will working during retirement give you a sense of purpose and camaraderie, but it will also allow you to enjoy more spending power.
Reduce the burden of medical expenses by staying active and healthy. Exercising and healthy eating along with regular cholesterol and blood pressure checks, can reduce your risk of future medical issues. The National Center for Health Statistics recorded that 74% of deaths are caused by heart disease, cancer, respiratory diseases, stroke, Alzheimer’s disease, unintentional injury, influenza, diabetes, pneumonia, kidney disease and suicide.
Invest in Insurance
70% of seniors over the age of 65 will require long term care services during their lifetime. Life insurance along with long term care insurance can help to offset the cost of medical bills and funeral expenses. It can also cover costs that are not paid by health insurance, Medicare or Medicaid.
Expect the Unexpected
It is important to save more for retirement than you think you will need. With uncertainties such as medical expenses, natural disasters, and job loss, future events may leave you needing more money than originally allocated.
Expert financial help can defer or save the tax burdens of retirement. A “fiduciary” will give you legal aide that is in your best interest.
US News & World Report forecasts that there will be fewer workers supporting retirees by 2050. The Social Security net is becoming increasingly strained as there are 1 in 6 older Americans currently living below the poverty line.
Staying flexible with your financing options can also be beneficial during retirement. Selling your home, companion living, VA Aid and Attendance funds, low interest bridge loans and reverse mortgages can all be valuable options.
Your standard of living doesn’t have to be lowered during retirement. Saving as possible and spending less than you earn can help ensure that you live well throughout retirement. Early savings and planning can help us to lead a fulfilling retirement and limit the burden we place on our loved ones.
To learn more about Regency Senior Living, call 423-581-7075.