Essential Tips for a Secure and Comfortable Retirement
Planning for retirement can feel overwhelming, but with the right strategies, you can ensure a secure and comfortable future. Here are some essential tips to help you prepare:
- Work with a Financial Advisor
One of the best ways to feel confident about your retirement is to work with a financial advisor. Industry leaders like Fidelity recommend having 10 times your income saved by age 67. Using our Goal Planning and Monitoring program, we can help you create a personalized plan that considers your health, longevity, estate, and tax planning needs. This tailored approach can make saving for retirement feel more achievable and less stressful.
- Plan for Longevity
People are living longer than ever, which means you need to save more to cover those extra years. On average, Americans live into their early 80s, and women tend to live even longer. This means you could be living off your savings for two to three decades. A longevity strategy that accounts for the increasing cost of living, especially in urban areas, is crucial to ensure you have enough to live on throughout your retirement.
- Consider Long-Term Care Costs
As societal changes lead to fewer family members available to provide care, planning for long-term care becomes essential. With 70% of people over 65 expected to require long-term care at some point, the costs can be substantial. Despite this, only a small percentage of Americans have long-term care insurance. A typical American turning 65 will pay an average of $120,900 in long-term care costs. Planning for these expenses can help prevent the depletion of your savings.
- Account for Health Issues
Health care is a major expense in retirement, with costs rising significantly as we age. The per capita lifetime expenditure is around $316,000, with nearly half of this occurring during senior years. Many retirees will face costly health issues, and managing chronic diseases can be particularly expensive. Planning for these health care costs is a key part of ensuring your financial stability in retirement.
- Have a Contingency Plan
Building a reserve fund for unexpected large expenses is essential. This can help reduce the risk of financial surprises during vulnerable periods, particularly in later stages of life. Discussing where and how you wish to live as you age, and involving adult children where appropriate, can help maintain your desired lifestyle.
The Importance of a Financial Plan
Having a comprehensive financial plan can significantly help you feel more prepared as you approach retirement. A well-structured plan provides a clear roadmap for your financial future, helping you to anticipate and prepare for various expenses and life events. It allows you to set realistic goals, track your progress, and make informed decisions about your savings and investments. Ultimately, a financial plan can reduce stress and uncertainty, helping ensure that you are well-prepared to enjoy your retirement years to the fullest.
The Bottom Line
Retirement needs vary from person to person, but considering these factors can help ensure a more secure and comfortable retirement. By working closely with our team, planning for longevity, considering long-term care costs, accounting for health issues, and having a contingency plan, you can feel more confident about your financial future.
Contact us at Donna.peffley@raymondjames.com or use our scheduling link HERE to schedule a phone call with us.
Working with a financial professional does not ensure a favorable outcome. All investing involves some degree of risk, investors may incur a profit or loss regardless of strategy or strategies employed. Every investor’s situation is unique, you should consider your investment goals, risk tolerance and time horizon before making any investments. Long term care insurance or asset based long term care insurance products may not be suitable for all investors. Surrender charges may apply for early withdrawals and, if made prior to each 59 1/2, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Guarantees are based on claims paying ability of the issuing company.
