Retirement is the ultimate goal. While it may take decades to reach that point financially, it’s essential that you start sooner rather than later. Make your retirement plan with these key factors in mind to avoid being caught in a rough position.
You can't comfortably retire if you don’t have anywhere to stay. At the moment of retiring, you are either going to want to stay in a house that you already own or sell it and move into an ideal retirement location. Renting while retired isn’t entirely out of the question, but it’s usually not a great idea. While statistics on whether renting is truly cheaper in the long run can vary, owning an asset as valuable as property can be a huge help. It acts as a kind of financial safety net. Plan how and where you will purchase your retirement property, and calculate how much that will subtract from your savings.
Healthcare is absolutely essential for everybody, but especially for senior citizens. The most statistically likely outcome is that you will retire when you are nearing your twilight years of life, so you need to be prepared. Older people are a lot more vulnerable to disease and accidents. Their bodies are slowing down and have faltering immune systems. They also tend to be more fragile. Make sure that you have enough money put away to pay for medical insurance with good, comprehensive coverage. Programs like Medicare can help pay for hospice care costs as well if you can’t afford medical insurance. Make sure you don’t end up financially devastated by one emergency.
It might be freeing to imagine yourself living in retirement, free from the fees and costs of the working world. But don’t forget insurance! You’re going to want insurance for all of the most important areas, including (but not limited to) medical insurance, home insurance, life insurance, and vehicle insurance. The range, scope, and cost of these insurances will depend heavily on your circumstance. Do your best to calculate now what those circumstances will likely be, and how much of your savings will be required in order to pay your monthly fees without anxiety.
Retiring might seem like a far off event, but the truth is that you need to start saving now. Every year of savings adds some drops into the bucket that will eventually become your only source of income. Start now, plan carefully, and you can bet on retiring happy and comfortably.
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