Between 2006 and 2016, there was a 33% rise in Americans aged over 65 to 49.2 million. What’s more, it is expected that by 2060 this figure will double. For this reason, it is imperative that you prepare accordingly as sooner or later you will be a part of this group.
Tip # 1: Avoid Complacency with Your Retirement
Typically, people plan for most life engagements than for retirement. Once you retire, you’ll have more freedom than you’re accustomed to. Plus, you will need to make significant lifestyle changes to cope with life after retirement. This is why you need to create a financial plan for you during when you are no longer working.
Remember that it’s not what you have that determines the quality of your retirement instead it’s what you know. Ideally, you should strive to align your spending habits with your retirement goals. In addition to that, you need to consider the impact of unforeseen expenses. Sometimes these may include buying a new car, renting a new home among others. Hence, having substantial liquidity will help you avoid selling your assets in a losing market.
Tip # 2: Maintain Your Dignity
Throughout your retirement, it’s essential that you maintain your dignity. But how can you do that? Before deciding on when to start your Social security, evaluate how this decision will impact your family as well as how long you will depend on Social Security.
Tip # 3: Consider Your Spouse
It is vital that you think about your family. For instance, women over 65years of age expect to live 20.6 years while men live another 18 years. Also, 45% of women aged 75 years and over live alone. To make matters worse, these women are inexperienced in financial management. Given that, these women can participate in financial management together with their spouses as well as with assistance from financial planners. Doing so helps women manage their financial future when necessary.
Tip #4: Plan for Healthcare
As you grow older, your healthcare needs can increase. In 2017, there was a 33% increase in the number of adults aged 85 that require personal health assistance. This figure is twice more than that of adults in the 75 to 84 age group as well as six times higher than the 3% level of adults in the 65 to 74 age bracket.
Hence, you should consider demographic trends impacting on your long-term and short-term healthcare costs and needs as well. Though a majority of individuals understand what healthy living entails, only a few live accordingly. Similarly, two significant risks retirees deal with are health and financial issues. An absence of any of these elements can adversely impact the quality of your life. For this reason, ensure that you have a plan to help you meet any long-term care needs you might have. You can do so via personal savings or insurance.
Tip # 5: Identify Your Revenue Streams
Though most Americans prefer working part-time after they retire, only 20% of 65-year-olds do. It is crucial, then, that you have an ongoing investment plan and assets for when you no longer draw a paycheck.
Tip # 6: Plug Any Financial Loopholes
Periodically, you should evaluate your budget and investments to help you identify and plug any leaks. Identify ways to save some extra money month. For instance, leveraging available workplace retirement schemes to minimize your retirement expenses. Keeping an eye on your investment costs will also help you save more.
Tip # 7: Maintain Proper Documentation
Ensure that your beneficiary details are accurate for all your workplace retirement, IRA, or Roth accounts. Additionally, you should update your will, power of attorney, and any advanced medical directives. In turn, you will benefit from having peace of mind.
Tip # 8: Relax and Enjoy Your Retirement!
Remember that old age gives you the opportunity to enjoy your twilight years. So passionately engage in enjoyable activities to make your retirement worthwhile. By having these three factors sorted – enjoyment, health, and finances – you can make this time fruitful.
Tip # 9: Give Generosity a Place
During your retirement, you could do well creating endearing family videos. Additionally, you could participate in charitable activities as a means of displaying your love and generosity for others.