During your retirement, it’s uncommon to run into some sort of hardship along the way. With some discipline and planning, there are some things that you can avoid. Although there is absolutely no way to control what events will happen in your life, it’s essential to be well informed and prepared as possible when it comes to retirement. Here are a few common retirement threats and how you can prepare for them.
As you get older, the more healthcare you are more likely to need. You may not be working anymore, but there’s a good chance you’ll be doing everyday activities that you may need medical assistance with. Your health will not be as good as it once was, so seeing medical providers on more occasions means an increase in spending. One way you can combat this threat is by planning for long-term care by saving as much as you can and getting insurance. This could mean having a health savings account that can help you pay for the medical expenses that Medicare doesn’t cover. HSA accounts are perfect for anyone with high-deductibles since they are tax-favored. It’s imperative always to have money saved for emergencies, whether they’re medical or not.
The truth is that inflation is very likely to come in between you and your savings. Those who are retired can find it difficult to reduce spending after working so long and finally having a break. According to the U.S Bureau of Labor Statistics, over the past 50 years, inflation has averaged 4% every single year. This may not sound like a lot, but $5 today will only be able to buy you a little over $2 in 20 years. To control inflation as a threat, invest in investing. Whether it may be stocks or a business, by investing, you could be able to provide for yourself in the long run. Do your research when committing to investments because many of them have return compensation that varies with inflation rates.
Outliving Your savings
Technology and medicine have played a huge role in the healthier lifestyles that Americans are living in. This is great news, but it just means that people are living longer and could run out of money. Consider outlining your retirement assets and determine how much you will be spending on average every month. If you’re willing to wait until 70 to collect your retirement money rather than 62, this could also help your monthly income grow.
Securities offered through Kalos Capital, Inc. and Investment Advisory Services offered through Kalos Management, Inc., both at 11525 Park Woods Circle, Alpharetta, GA 30005, (678) 356-1100. Retirement Income Strategies is not an affiliate or subsidiary of Kalos Capital, Inc. or Kalos Management, Inc.