With life expectancies on the rise, retirement spans increasing and the cost of living rising, saving for retirement can seem like an up-hill battle. Here are a few options that can help your retirement savings go the distance:
- Don’t make time a predator when it comes to retirement. Use time to your advantage and begin saving in your early working years. Years of 401(k) contributions combined with compounding interest can produce a healthy retirement.
- It may not seem like you are spending a significant amount when you eat out at lunch, but over time the spending can add up. Making sacrifices while you are still working can provide a cushion for retirement.
- Older Americans have more credit card debt than those in their younger years. Manage and pay off your debt early to avoid high interest fees. Refrain from using retirement accounts to reduce credit card debt as it typically incurs penalties.
- Though you may have retired, working is still an option. Work can give you a purpose, build camaraderie and increase your spending power.
- Staying active and healthy impacts your retirement savings. A healthy lifestyle reduces your chances of developing most medical conditions in the future. According to the National Center for Health Statistics, 74% of all deaths are caused by heart disease, cancer, lower respiratory diseases, stroke, unintentional injuries, Alzheimer’s disease, diabetes, influenza, pneumonia, kidney disease and suicide.
- Medical bills and funeral expenses can be costly and become a growing debt. 70% of seniors over age 65 will require some variation of long term care service in their lifetime. To pay the costs not covered by health insurance, Medicare or Medicaid consider Long Term Care Insurance.
- Expert advice can help you plan for retirement while deferring or saving tax burdens. A “fiduciary” has a legal duty to act in your best interest as oppose to making commissions from selling costly plans.
- Even if you feel you have created a sufficient “nest egg” it is important to save more than you think you will need. You want to ensure you are still prepared even when unexpected emergencies such as medical issues, natural disasters or job loss could occur.
- With one in six seniors living below the poverty line, the Social Security net is becoming increasingly strained. US News and World Report estimates that by 2050, there will be fewer working Americans supporting retirees.
- When the time comes to finance care, it is important to look at all your options. Selling your home, low interest bridge loans, reverse mortgages, companion living along with VA Aid and Attendance funds can all be options.
Saving for retirement can be a challenge for each of us. To create a retirement savings that will last it is critical that you spend less than you earn and save whenever possible. With disciplined sacrifice and savings you don’t have to lower your standard of living as you age.
Planning ahead for retirement can mean the difference in being self-sufficient as oppose to creating a burden for your family.
To learn more about Riverwood Retirement Community, please call 706-235-0807.