As health care costs rise, so can your level of worry about having enough for retirement. Some health problems and their costs come with age. But some can be dodged by staying healthy, especially later in life. Being fit lowers your risk of injury and illness, which also lowers the out-of-pocket expense of visiting your doctor, a specialist or the emergency room.
Want more motivation? Research shows that men who exercise earn 6% more than men who don’t. The gap is 10% for women. Fit people tend to miss fewer workdays, which leads to more opportunities and pay. Evaluate your fitness and see if you can work in some workouts. It could really pay off.
Have you kept your retirement savings on track, or have you taken a bumpier road? Maybe you’ve gone completely off the beaten path. Now is a good time to take a close look at your finances and refine your plan.
How much will you need for retirement? Is your target still on target? Look at the cost of living, life events, your health and other things that might have changed since the last time you looked at your plan. If needed, reset your target and fine tune your strategy to hit it.
Most Americans who reach age 65 will likely need long-term (custodial or medical) care at some point. You may want to figure the cost of long-term care in Kansas into your retirement savings plan.
Medicare only covers certain types of care:
Community & Assisted Living
Nursing Home Facility
|In-Home Care||Homemaker Services: $4,576
Home Health Aide: $4,4671
|Community & Assisted Living||Adult Day Health Care: $1,788
Assisted Living Facility: $4,580
|Nursing Home Facility||Semi-Private Room: $6,296
Private Room: $6,813
Look at income and expenses. Do your estimates. Maybe even do a dry run by living a few months on your possible retirement budget. If it doesn’t work, maybe you need to delay retirement.
This is an important part of retirement planning. Make a list of everything you've always wanted to do. Then decide how many you could realistically do in retirement.
The money side is easier to figure out. But also ask yourself if you're mentally ready. It's a whole new ballgame. Take your time and think about it.
How much should you focus on extinguishing your debt before you retire? It depends. If you take a lump-sum distribution, what are the tax implications? Will you be burning money just to pay off your debt sooner? Will it truly help your financial situation?
On the other hand, maybe you have high-interest loans that will eat away at your retirement dreams. Help your future self by focusing on extinguishing as much debt as possible before you reach your retirement day. So it won’t come back to burn you.
44% of Americans ages 60-70 have a mortgage when they retire.
Now it’s about prioritizing spending, but that’s true for any career stage. As you cruise through pre-retirement today, you should be thinking about your retirement budget down the road.
Most people have a dip in income after they retire. Can you continue spending like you did when you were younger, especially with retirement around the corner? Probably not. It might be time to be a more disciplined spender.
Start by cutting expenses while you’re still making good money. Every little bit helps. And it lets you sock away a little extra as you’re coming down the homestretch.
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