Planning for your future is important at any age , but when you ’ re close to retirement , you ’ ll want to make sure you ’ re set up for success . If you feel overwhelmed or are looking for some guidance , there are financial advisors and legal counsel who are available to assist you every step of the way , allowing you to feel comfortable and confident in your retirement .
Retirement Financial Planning
Retirement planning helps to ensure that you are set up to live comfortably during your retirement years . Every dollar you save leading up to your retirement contributes to a successful future . When preparing to live off a fixed income , it ’ s important to establish a plan with your spouse , partner , or loved one who will share in your retirement . Knowing that your goals and dreams are aligned will make planning that much easier .
When you put some thought behind your retirement plans , you can start by asking yourself these questions :
• What age do I want to retire and where do I want to live ?
• What will my lifestyle look like ?
• What do my retirement incomes equal ? ( Social Security , 401k , IRA , pension , etc .)
The answers will provide you with a good baseline for determining what is needed for your retirement and how you can adequately prepare .
In addition to the questions above , it ’ s essential to think about what you ’ ll be spending in retirement . You ’ ll want a good understanding of what your daily spending habits total , or if there are times of the year you spend more or less . As you age , you ’ ll also want to factor in unexpected health care costs . This could include copays , out-of-pocket costs , or even dental care and assisted living costs . According to NerdWallet , you should prepare to replace approximately 70-90 % of your annual preretirement income for retirement expenses . For example , if you make $ 90,000 per year before retirement , you ’ ll likely want to plan to have between $ 63,000 and $ 81,000 in retirement . This income would be made up of both savings and Social Security payments .
Finally , you ’ ll want to look at your housing situation . Are you going to stay where you are ? Downsize ? Find a retirement community ? Sell your house and move somewhere tropical ? The possibilities are endless , but you should identify all your viable options and look into costs associated with each to plan accordingly .
Retirement Living
Retirement communities offer those entering retirement ( or as young as 55 +), and beyond , a community designed to fit the lifestyle of older adults . Homes are typically fit to satisfy smaller families of one to two people , offer single-level living or condo-style homes , and are low- or no maintenance , offering several amenities . Many people choose to sell their larger homes and downsize to a retirement community for the builtin neighborhood , making socialization easy and fun . The social interaction seniors receive from living in a retirement community provides them with a higher quality of life and even potentially reduces the risk of dementia .
When looking into a retirement community , ask friends or family who may already live there what they like about it and see if it ’ s a lifestyle you ’ d like for yourself . When deciding on a specific community , think about where you ’ d want to live . Do you want to stay close to family or move somewhere warmer ? Do you want to move close to the city or out to the suburbs ? You ’ ll also want to look at the activities and amenities offered at each community to see what piques your interest . If your faith is what grounds you , you may find a retirement community that ’ s rooted in religion . Or if you want to maintain your active lifestyle , look for a community offering outdoor activities , yoga , or walking groups . There is something for everyone ; you just have to put in the time to search for a community that suits you .
When deciding on a new home , be sure to research costs . While the price of the home may fit nicely into your price range , the extracurricular activities associated with retirement communities may have additional fees . You ’ ll want to know all costs up-front to make sure you ’ re setting yourself up to maintain your quality of life .
Assisted Living
Assisted living caters to those requiring assistance with daily tasks such as bathing , getting dressed , and using the bathroom . There are still several amenities offered at assisted living facilities such as activities , on-site restaurants , and social gatherings to keep aging seniors active and entertained . Those in assisted living don ’ t require 24-hour assistance and care , just some aid when and where they need it , so there is freedom to go about their daily activities .
There are certain requirements for assisted living facilities , so it ’ s important to look into what the admissions process entails . Most facilities want to understand medical history and what a typical daily care plan would look like .
The decision to move parents or loved ones to an assisted living facility isn ’ t always easy , but when they are unable to fully care for themselves , moving to a place that is able to offer the care they need is often the right choice . Making this decision may be hard , but having to care for an aging parent at home isn ’ t always feasible .
When searching for a location for your aging loved one , it ’ s important to consider cost . The costs associated with such close care are significant , but cover housing , transportation , housekeeping , meals , and utilities , and additional fees may be incurred for other activities or amenities . It ’ s important to understand what all is covered . There are some options available to save on costs for assisted living such as VA benefits and certain life insurance plans , and Medicaid and Medicare could assist in paying for care .
Elder Law
Having a legal professional assist in elder law planning will set you and your loved ones up for success in later years . Elder law planning helps ensure that seniors are financially prepared for their aging care and often helps navigate the complex legalities of state and federal regulations regarding their aging care decisions . Attorneys who specialize in this type of law aid in anticipating future medical needs , financially preparing for long-term care
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