As much as retirement is something to look forward to, it can also be a cause for concern. Besides having to transition to a completely new lifestyle, you also have to make sure you will have enough money to retire comfortably and happily. Without income from work, it can be difficult for you to take care of your living expenses, medical expenses, and other financial obligations. Here is a look at some of the top concerns facing soon-to-be retirees, and how they can be overcome.
Having Enough Savings
According to a 2017 survey conducted by Merrill Lynch, about 81 percent of Americans do not know how much money is needed to fund their retirement. If you are one of them, you may find yourself in a lot of trouble if you outlive your savings. The first thing you need to do to ensure that you will have enough savings to cover a long retirement is to use a retirement calculator. This type of calculator can be found on many websites. Then, you need to take certain measures to boost your retirement savings, such as maximizing contributions to your company retirement plan, opening an individual retirement account (IRA), and paying off your debts. Another way that seniors can get additional finances is by tapping into their home’s equity through a reverse mortgage. The reverse mortgage fees can be tailored and customized to fit your needs and how you plan to spend it for retirement.
Health Care Costs
As you grow older, you are bound to experience more health problems, which means higher medical expenses. Unexpected medical expenses can derail your retirement plan and put you in a big financial hole. However, there are a number of things that you can do to cut health care costs in retirement, including getting Medicare (or another type of health insurance), and living a healthy lifestyle to minimize health risks.
Being a Financial Burden to Your Loved Ones
If you run out of money during your retirement, you can be a financial burden to your family members. The best way to ensure this will not happen is to plan your retirement properly, with detailed calculations of all expenses and measures for generating enough money to last your entire retirement. Also, although it may be too soon to think about death, you have to consider the financial burden that you may place on your loved ones after you pass away. This can be prevented by buying a senior life insurance policy, which can cover funeral expenses, outstanding debt, and loss of income.
Proper planning is the key to alleviating the financial concerns of near retirees. It may take considerable time and effort to devise and execute a good retirement plan, but it will be worth it all.