Savvy financial planning calls for different strategies for different life stages. Many people spend too much time assuming that their financial goals end on day one of retirement. Yet financial decision-making continues into retirement and these decisions are just as crucial as ever.
At this time strategies must shift to accommodate a new stage and new goals. Here are some pieces of advice for creating wise financial planning strategies after your retirement begins.
It’s a popular misconception that you should start receiving your Social Security the moment you retire. In reality, there are some worthwhile reasons for holding off at least a few years. Married couples, for example, often don’t retire at the same time. If your spouse is still working after you’ve retired, you may wish to take advantage of his or her income for a while instead of reaching right for your own Social Security benefits. This can maximize the benefits for both of you, and you can use the interim to cultivate your personal nest egg.
The same is true if you choose to continue working part-time. Many people, instead of diving into retirement, decide instead to gradually slide into it. If that describes you, you may choose to lean on part-time earnings for a few years before claiming Social Security benefits.
In either case, the longer you wait after reaching retirement age to take advantage of your benefits, the more you can expect to receive. Your individual circumstances will determine when the right time to claim Social Security will be. The point to keep in mind is this: up until the age of 70, each year that you wait will add another 8 percent to your monthly benefits when you do eventually claim them.
Establishing goals is one of the most important pieces of financial advice for any retiree. You need to look for a financial solution that aligns with your individual priorities. Your future earning power necessarily won’t be as strong as it was when you were working (but then again, neither will your expenses), so you need to keep a close eye on your budget. Here are some ways to do that.
Many older adults have found that moving into a high-quality senior living community helps them achieve all these goals and then some.
Finding the right kinds of insurance is another vital piece of financial advice for retirees. Although you’re no longer working, there are still many reasons to either keep the insurance coverage you already have or seek out a new policy that suits you better right now.
Life insurance, for instance, offers a lot more than just “peace of mind.” Many people have found that they can use their life insurance policies to erase their old debts or provide a valuable inheritance for their friends and family. In the event of any unforeseen circumstance, you can withdraw against the cash value of your policy to help cover the cost.
Annuities are another excellent way of supplementing your long-term savings. Annuities work by putting aside a select portion of your financial assets in advance and then receiving paychecks at set intervals over the course of your retirement. These payments can be customized as needed, whether in fixed terms, variable, deferred, or according to some other schedule of your choice.
Long-term care insurance is one of the principal means of achieving your long-term security. This gives you the peace of mind that you will be protected in case of a chronic health condition and the medical care that would require. It’s a good idea to remember while you’re creating your financial management plan after retirement because, except in a few cases, Medicare typically won’t cover these costs.
According to the Center for Retirement Research, people spend an average of 20 years living in retirement. That’s why it’s not enough to cover the bare minimum of expenses. You should also look to ensure your quality of life over the long haul.
An active, health-oriented senior living community like Aspire at Carriage Hill is dedicated to helping you safeguard the free and independent lifestyle you’ve always wanted for yourself. Our wellness philosophy, Salus by Solvere, means that we take a fully integrated approach to the health and well-being of all our residents.
Complete our online request form, and we’ll send you a community brochure of Aspire of Carriage Hill. You can call us at (804) 286-1133 and our staff members will be happy to answer your questions and tell you all about our amenities and activities.
If you’d like more information on planning for retirement, view our expert video series that covers topics like wellness, downsizing and active aging.