Have you wondered how on track you are for a stress-free retirement? Taking inflation and the amount of time it takes to establish a solid retirement fund into account, it may seem like a monumental challenge. Even if you have extra years to save, making improper decisions may swiftly derail your long-term retirement strategies if you are unprepared for the unexpected. There is more to retirement planning than accounts like your IRA, 401k, or social security. Here are some important factors that will propel you towards a successful and worry-free retirement.
Given that you will not have income from your full-time employment after retirement, having an estimate of your monthly expenses will be essential to maintain your standard of living. Understanding your cost of living will determine the amounts you must save for expenses, which can also change in the long term. It is a common misconception that you will spend less after retiring. Although you may have fewer liabilities like mortgage payments, your lifestyle costs as a result of your newfound free time may rise. You will have more time for fun experiences, but travel, entertainment, and food can be costly. Some may even downsize to save money, but then struggle to actually cut costs due to the quality or location of their new home.
Another factor is the sources of income you have in retirement. Social Security is generally one of the first income sources people consider, but you may also be eligible for a pension. Other sources of income include stock investments, real estate investments, and company ownership. Annuity income or inheritance may also come into the picture before or during your retirement. It is advisable to have calculated your earnings conservatively to prevent overestimation.
Beyond expenses and income lies longevity, which is a significant factor in retirement planning. One’s estimated life expectancy based on lifestyle, family history, or medical conditions should be taken into consideration. There is no way to predict the unexpected, but here are several strategies for mitigating the risk of outliving your assets. Investing in annuities is a popular stream of income for retirees, and can serve as a stable source of consistent income flow. Annuities come in various forms and can be attained from independent bankers, banks, insurance companies, and other financial institutions.
Assets or what you own is another important factor. Work out how much savings you have in retirement accounts like your 401(k) or IRA accounts and determine if more assets are required in the long term.
Other unexpected events to account for include severely declining health, which can completely ruin a retirement plan. Plan ahead for the expenses of potential long-term health care such as assisted living or nursing homes, which can be too expensive for many. However, avoiding such communities and opting for professional assistance at home can quickly deplete hard-earned assets. Having life insurance that finances long-term care can help secure your retirement.
Embark on Your Retirement with Veranda Club
If you or your loved one are seeking retirement living options, contact our team at Veranda Club, and we will answer any questions you may have regarding any financial concerns, as well as our living options, programs, and more.