FINANCE
PLAN NOW TO LIVE YOUR BEST LIFE IN THE GOLDEN YEARS
By Colton Dooley Contributing Columnist
Many of today ’ s retirees can expect to spend 30 years or more enjoying the fruits of their labor . That ’ s why it ’ s increasingly important to not only plan for retirement , but to plan for longevity in retirement . That includes all the ways your life will change and all of the events you can ’ t foresee .
Be sure and ask yourself these key retirement questions to ensure that you prepare for the future as best you can . Where will you live ? Housing is often the biggest expense in retirement . While aging in the comfort of your home would be ideal , modifications to your home could be necessary as mobility challenges arise . It ’ s important to consider what housing options are available to you and what they will cost ? Who knows … You may even want to downsize , and local Realtors can provide you with many options .
How will you get around ? It may come as a surprise , but transportation is a significant expense for many individuals older than 65 . You should consider how you will get to your favorite places in retirement , who will assist you if you can ’ t drive yourself somewhere , or what kind of transportation options are available in your area . How will you safeguard your health ? Many people expect Medicare to pay for their healthcare expenses in retirement ; but in reality it only pays 60 percent of healthcare costs according to the Employee Benefit Research Institute . You still have premiums , copays and deductibles to consider , and as you age , healthcare costs can add up .
Who will take care of you ? According to the Department of Health and Human Services , 70 percent of Americans of the age 65 or older will need some form of long-term care . There are a wide range of options on both ends of the spectrum . This includes such options as paying for someone to help with light housekeeping , assistance from home health aides , or more intense care such as an assisted living facility or nursing home .
Are your allowing enough funds for food and entertainment It ’ s important to allow yourself enough cushion so that you can enjoy the extras you ’ ve worked so hard for such as travel , dining out , club memberships , and more . Socialization is important to your mental health , so make sure you allow for activities that can keep you connected with others .
On average , most retirement planning research shows that the percentage of expenses for most
Dooley
senior citizens can be categorized as follows : Housing : 35 percent , Transportation : 15 percent ; Healthcare : 13 percent ; Food : 12 percent ; Entertainment : 6 percent ; and Other : 19 percent , for clothing , insurance , gifts , taxes , and personal care products , for example . Of course each person is unique , so these percentages are likely to vary .
Have you given thought to the way you want your assets to be transferred to your future generations ? Now is the time to secure your legacy . Be sure and take time to specify who you want to give access to your important documents and information so your wishes will be in place when the time comes . Wealth management professionals scan help you with the accumulation , preservation , and transfer of wealth .
While these are a lot of questions to consider , you can put your mind at ease with wise counsel . A local financial professional can help you plan for a variety of scenarios , work with you to develop an annual budget , and help you make wise decisions so that you will have sufficient assets to cover late-in-life care and housing expenses . Knowing that you have put a plan in place goes a long way to help you prepare mentally , emotionally , and financially for your future .
• Colton Dooley is Trust Portfolio Manager for Citizens National Bank ’ s Wealth Management Division .
48 • TIMELESS MERIDIAN