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 pre-retirement 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 condostyle 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 .
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