From finding ways to fund health and long term care costs to deciding when they best time to retire is, baby boomers have an overwhelming number of retirement questions that need answers sooner rather than later.
However, the biggest question on their minds may be somewhere along these lines: “What do I need to retire with enough money?”
It is no secret that financial stability is becoming elusive to retirees these days. Many retired individuals are surprised with costs they would never have imagined during the years they were planning for retirement. Their finances are stretched to the breaking point, which then leads the younger baby boomers terrified of transitioning to retirement.
If you are reading this, then you may be a baby boomer planning for retirement or deciding if you are ready to take the plunge or not. First, let us say that you are on the right track by researching extensively. Second, allow us to help you secure your future.
Let’s start by answering one of retirement’s biggest challenges:
The truth is this: there is no set figure of how much you need to have before retiring.
This is because of factors that are unique your own. Your circumstances, financial habits, and retirement goals—these can significantly change the amount of money that you need for retirement. On top of that, you would also have to consider long term care and health care needs which if you think about it, no one can really determine correctly. At most, you can make intelligent guesses.
However, there is something you can do to prepare, and this can help prepare your finances immensely: thorough research.
Retirement is changing right before our eyes. Take the time to learn about the changing costs of health and long term care. Read about the different retirement advice given by industry experts about how you can manage Social Security benefits, 401(k)s, or IRAs.
What matters is that you keep yourself updated. This way, you get to stay on top of everything, and you get to anticipate any drawbacks.
To help get you started, we shared in a previous post seven retirement budgeting tips that could give you an idea of how to manage money effectively. Moreover, we have listed three online retirement planning tools that can help you save significant amounts of money in the long run.
We are always on the hunt for resources that could help baby boomers plan effectively for retirement. Recently, we stumbled upon an infographic that helps baby boomers plan for retirement.
What we liked about this resource material is that it shows ways to cut a lot of time researching for ways to plan for retirement and save a lot of money in the process.
These types of resources can help you learn so much about planning for the costs of long term care without having to dive into pages and pages of information and jargon.
The reality is this: long term care costs can be difficult to fund with the help of long term care coverage.
At this point, long term care expenses have become so expensive that it can significantly dent your retirement savings. What do we mean by this?
Well, to illustrate, the US Government Accountability Office shares that the average retirement savings of American age 55 to 64 are $104,000. The average annual cost of nursing home care as of this moment is already $82,125 (for a semi-private room).
Can you imagine what these figures will be in a few years? Keep in mind that older adults typically need years of care.
This is why long term care insurance coverage is a necessity for retiring baby boomers. Understandably, many are hesitant to purchase a policy because of the seemingly high costs. However, the trick here is to plan early with the right people.
If you wish to learn more about how you can do so, please feel free to contact us. We’d be happy to help you find the suitable coverage.
Your retirement income is perhaps one of the most important information you need before retiring. Luckily, retirement calculators help provide this information. Moreover, they seem to have taken it one step further.
Nowadays, retirement calculators, such as the ones by AARP and Bankrate, provide detailed computations and an overview of your options.
Understandably, retirement is a difficult time to plan for. There are so many factors that could go wrong there are so many areas in which you can make mistakes. Keep in mind that it is okay to make mistakes. What matters is how quickly you bounce back from it.
After all, one of the biggest secrets to a successful retirement is the ability to anticipate and adjust to changes that happen. Instead of focusing on the difficulties, shift your attention to finding ways to solve the issue. Remember that something will go wrong, and you need to be able to handle these roadblocks efficiently.