How much thought have you given to growing older?
A little? A lot?
Wherever you are in life, keep these things in mind when thinking about your financial future:
- The longer you wait to plan, the more difficult the decisions surrounding your financial situation will become.
- Not only do the decisions get tougher, but the expenses can swell due to potential health care needs and shifts in living arrangements.
Read our tips for retirement planning.
Thinking ahead
Find a financial planner
Financial planners are skilled in understanding Social Security, pensions, taxes that may accompany retirement income and more. Most importantly, they can help determine if and when you can retire and highlight potential shortfalls if you do.
Read financial tips for retirement.
Note: Estate planners are not financial planners. Estate planners help determine where your assets go after you die.
Don't keep plans a secret
Understandably, you might want to guard information and protect relationships with your spouse and children. However, bringing them into your decisions can lead to sound financial management understood and agreed to by all.
Timing is key. Approach the subject before it’s too late, such as when issues like cognitive decline begin to happen.
Also, talk about matters beyond money such as health care, estate planning, funerals and assistance you may need from family members.
Discuss health concerns with doctors and family
If you have a chronic condition such as COPD or diabetes, talk to your doctor about long-term scenarios and potential complications concerning your health. This may help determine how much care you might need in the future and what type of budget you’ll need.
Put advance directives in place
Advance directives – like a living will – are legal documents that provide guidance if you become temporarily or permanently unable to make or share decisions about your health or finances.
Thinking financially
Learn to budget
Even better, learn how to stick to one.
Read more about preparing financially.
Get fluent in Medicare
Know what Medicare covers while painting your post-retirement picture.
Need it explained in plain English?
Calculate your Social Security benefits
It’s another crucial income source for your post-retirement years.
You’ll find several helpful calculators here.
Review auto, health, life and property insurance coverage
Insurance experts suggest reviewing your policies annually. Set aside time to discover potential savings.
Are cost breaks available depending on certain milestones you’ve crossed? Can you save money by bundling coverages? Is there a policy you can get rid of? Is there coverage you should add?
Examine long-term care plans
Most people want to age at home. The reality is, the older you get, you may not be able to do so.
According to the U.S. Census Bureau, in 2020, 1.4 million people, or 2.5 percent of the population age 65 and over lived in skilled nursing facilities. As age increased, the percentage of people living in nursing homes increased:
- 0.9% of 65-74 year olds
- 2.7% of 75-84 year olds
- 10.2% of people 85 and older
However, resources ranging from non-medical services at home to assisted living are options for older Americans.
Long-term care insurance policies cover various services and settings.
Research withdrawal rules behind your IRA or 401(k)
Generally, your first distribution from an IRA or 401(k) is required around age 73.
Sources: U.S. Department of Health and Human Services, Social Security Administration, Internal Revenue Service
Thinking about moving to senior living?
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