Are you planning to retire within the next 10 to 15 years? It might be time to start planning for your retirement. Not just so you can better bolster your portfolio, but also so that you can take any necessary measures to better your retirement prospects.
It can be overwhelming, after all, there is so much to consider. To get you started, here are four planning factors for you to consider in your retirement planning.
Estimate Your Retirement Expenses
Begin with imagining the type of retirement that you will want. Do you want to travel? Are you going to continue to freelance or work part-time? Do you have any monthly expenses that are likely to continue? Next, you’ll have to set a realistic estimate for how much you are going to spend. While some expenses like commuting costs may decline, it is likely that others like medical care and entertainment costs will be higher. If you are planning to go for holidays often, chances are that your projected expenditure will be even higher than they currently are as well.
Factor in Medical Expenses
If you are going to retire when you’re over 65, chances are that Medicare will help to cover the majority of any healthcare costs that are routine. However, it might be important to get supplementary coverage to pay for long-term care or nonroutine healthcare costs. In fact, getting insurance to cover health care or long-term care can be helpful since premiums are lower when you are younger.
Calculate Your Likely Retirement Income
For many older adults, even if you are not working, you will probably still have income from other sources like employer pensions or social security. On top of this, your funds will likely come from savings, investment accounts, or any additional wages that you earn. This will probably be the most complicated part of retirement planning as some sources of income will be predictable and others less so. More importantly, you might have to pay taxes on certain sources as well. However, looking at this in advance will allow you to get a better idea of your retirement nest egg and also make any adjustments, if necessary.
Plan Where You Will Live
Where you choose to settle down will have a large impact on how much you will spend. For example, if you are living in an expensive state, it might be better to consider moving to a low-tax state to save more money. On top of this, whether you own your house, lie with your kids, or currently rent an apartment will also contribute to your monthly expenditure.
Another factor to consider is that many older adults will need assistance as they grow older. This can be due to medical conditions, safety concerns, or even just to avoid social isolation. For many, the solution is to consider senior living options like independent living or assisted living communities.
For more information on our different programs or senior care offerings, contact us today!