We’ve all seen the commercials asking people how far their retirement savings will take them. As the experiment illustrates, for most of us, our money won’t take us as far as you would think. With mortgages, tuition expenses and other financial obligations looming, a healthy retirement savings is a luxury many of us cannot afford.
As life expectancies increase, so do our retirement years. Thanks to advances in medical technology, retirement is lasting 30 years for some. The average life expectancy has grown to 76.4 years for men and 81.2 years for ladies.
It can be a challenge to store away retirement savings for the future when there are so many expenses now. Here are a few tips to make your money go farther and cover the cost of assisted living when the time arises.
- Start saving for retirement at an early age to take advantage of compound interest.
- Don’t let money “burn a hole” in your pocket. Small sacrifices now can make for a comfortable retirement.
- Manage and pay off debt early to create a savings.
- When paying down credit cards, focus on paying those with the highest interest rate first.
- Avoid borrowing from retirement accounts as they often come with high penalties from using the funds early.
- Work after retirement to maintain a sense of purpose and continued income.
- Visit the doctor, eat healthy and stay active to reduce medical expenses in the future.
- Consider Long Term Care Insurance to pay the costs not covered by health insurance, Medicare or Medicaid.
- Invest in Life Insurance to avoid burdening your loved ones with medical bills and funeral expenses.
- Work with a fiduciary to guarantee your financial advice is in your best interest rather in the interest of their commission.
- Plan for the unexpected such as medical issues, job loss or natural disasters to ensure you will have enough savings for retirement.
- Don’t rely on Medicaid or Social Security to be your retirement plan.
- Consider the advantages of a reverse mortgage, companion living, VA Aid and Attendance funds or low interest bridge loans to finance care.
Each person has their own unique challenges when it comes to saving for retirement. One principal remains constant for everyone, spend less than you earn and save whenever possible. Disciplined savings in your early years can make for an increased standard of living throughout retirement.
Tomorrow becomes reality sooner than we hope, so it is important to prepare for the road ahead while you still have options. To learn more about Regency Retirement Community in Jackson, please call 731-661-9888.