Every 8 Seconds Someone Reaches the Age of Retirement But Are You Ready?
In the last ten years of your working life, you are likely questioning whether you’ll face a comfortable retirement or a constant struggle. Your financial calculations may be based on incorrect assumptions of a stable economic picture. Here are some of the things you should consider when planning for your golden years.
1. Rethink Social Security
The longer you can put off Social Security, the more you’re going to collect. The full retirement age keeps inching upward. For example, if you were born before 1955, full retirement age is now 66. Retiring at age 62 could mean losing a quarter of your benefits. By waiting until you’re 70, you will collect more. If you expect social security to be a big part of your income, be sure you’re retiring at an age where you can get the most from it.
2. Consider Your Housing Situation
If you’re planning to downsize to a smaller home, do it before you retire. Any kind of mortgage is harder to get without a job, no matter what kind of equity you have in your current residence. If your home is paid off or there’s enough equity to sell it outright and still have money for a new place, check on home values in your neighborhood to see what you can afford and still have some surplus left over. You should consider buying the cheapest property you can live with and investing the remainder.
3. Plan Your Health Coverage
Of those 65 and older, 90 percent have recently taken prescription medication. While you can claim Medicare at 65, there is talk of budget cuts. Plan A for hospital care is free, but you will pay a premium for Plan B for other medical treatment. Plan D for drug coverage varies widely in cost. Obamacare faces an uncertain future. If you’re in poor health, insurance will be a priority.
4. Assess Your Investments
Hopefully, you started investing in an IRA or similar plan early, but it’s not too late to expand any liquid assets you have. To provide a steady income through your retirement, you need to get with a wealth management expert, such as one from State Bank of Cross Plains, and develop comprehensive plans to fit your situation. If you’re prepared to make sacrifices now, it could pay off later.
Planning for retirement should start as early as possible. With no economic guarantees for 10 years in the future, you should look for income that does more than just meet your needs.
Author: Hannah Whittenly