13 Jun Retirement: Don’t Be The 45%
Retirement is a journey filled with opportunity. But as people live longer, have they thought about how they’ll pay for medical costs that may increase as they age? Additionally, healthcare costs are just one of many expenses to consider for retirement.
Retirement Fact: Studies show that almost half of workers (45%) are concerned they won’t have enough money for medical expenses in retirement.1
To be smart in our retirement we must be diligent and honest with ourselves. A few questions we can ask as we start thinking about retirement are:
- How much will I need to save for retirement in order to live comfortably?
- What are my goals?
- When should I start?
- What should I do?
- How much can I count on from Social Security?
- What costs might I run into once I’ve actually retired?
- Do I have any outstanding health concerns, or expect to?
Retirement Fact: Approximately 10,000 baby boomers will retire everyday for the next 19 years.2
Additionally, we have to account for our current income, inflation at the time of retirement, and changes in our living circumstances to name a few factors. Getting more serious with our retirement decisions at a minimum, you want to decide:
- On the annual income you desire in today’s dollars.
- Pick a retirement date.
- Determine your lifetime average inflation rate.
- Determine the average rate of return you expect on your investments before and after retirement.
- Determine the current market value of all your investments, including regular accounts, IRAs, and company tax-deferred savings plans like 401(k) plans.
- Obtain an estimate of any company-provided pension benefit.
- Obtain an estimate of future Social Security benefits (see Step 6)
Retirement Fact: A healthy 65-year-old couple retiring today can expect to spend more than $400,000 in retirement healthcare costs.
Traditionally the three main components of a person’s retirement portfolio include: pension benefits, savings/investments, and social security. However, there are many more options and paths that you can decide to take or add to your retirement portfolio. Some of these include:
- Participating in the gig economy.
- Starting an encore career.
- Monetizing a hobby.
- Reselling items on eBay or Amazon.
- Selling off assets.
- Downsizing your house.
- Taking out a reverse mortgage.
- Making money off the exterior of a home or owned land.
- Renting out part or all of a home.
- Purchasing rental properties.
However, each of these will have drawbacks in regards to investment, time, and may affect your other retirement benefits.
Retirement Fact: $92K is the national average cost for one year in a semi-private nursing home room.4
It can seem overwhelming at times, planning for your life after retirement. There are countless factors that should each be considered carefully to make sure you are retiring smart and ultimately happy. However, you are definitely not alone in your planning. However, Insuraty Inc has qualified staff who will work with you to meet your personal goals for retirement. We would love to help you consider some of the factors we covered today and talk about your options for a strong retirement portfolio.
Insuraty Works With The Best…
Insuraty Inc, works with a variety of the best providers in the Insurance and Retirement business. By becoming an Insuraty client you will have access to a variety of providers and their products who will get you to your ideal retirement goals:
Sourced from Transamerica product information:
1 The 2017 Retirement Confidence Survey, Employee Benefit Research Institute, 2017
2 “Annual Cost of Care,” Genworth, 2016
3 HealthView Services, “Retirement Health Care Costs Data Report,” 2017