Financial planning is important at any age. But for seniors, it means having the confidence that you have the funds you need to enjoy retirement without the burden of financial stress. Here are some simple financial planning tips seniors should follow to ensure they can be financially prepared for the changes retirement may bring to their lifestyle.
According to a recent Gallup poll, the average age of retirement in the United States has risen to 62 years old. But retiring at this age isn’t ideal for everyone. It’s important to consider your financial state, and not just your age, when deciding to retire. Make sure any plans to retire are based on what you have saved and the number of years you believe those retirement savings will last.
Part of making sure your retirement savings last starts with living within your means and factoring in expenses you may not have had to consider in past, such as healthcare or long-term care costs. Take the time to rethink your budget and look for areas where you can cut unnecessary or frivolous costs. Downsizing to a smaller home or a senior living community may also help you limit your expenses.
One of the biggest mistakes seniors make in their financial planning is not factoring in inflation. The price of an item today may go up by tomorrow. So, make sure you have the funds you need to maintain a comfortable lifestyle not just today, but 10, 20 or even 30 years from now.
Most of today’s seniors are eligible for Social Security benefits at age 62. But taking Social Security before your designated retirement age of 66 or 67, depending on your birth year, could mean you’ll receive 25% less benefits than if you would have waited. It’s also important to consider that the future of Social Security as a program remains unclear. When creating your retirement plan, factor in what your financial state would look like if Social Security benefits were to decrease or be eliminated entirely.
Many seniors put off financial planning simply because they just don’t know where to start. A financial planner can help you evaluate your current portfolio and offer guidance on a course of action. They can also help you manage your savings throughout your retirement, so you can feel at ease that you’ll continue to have the funds you need to relax and enjoy retirement.
Planning for the future can be scary and even a little stressful. But with the right plan in place, you can enjoy a relaxed, happy retirement. Make sure your financial planning considers how your needs will change as you get older. At Franciscan Ministries we offer a range of that ensure seniors have access to the amenities and wellness programs they need to maintain an active, worry-free retirement. Contact us today to learn more about our living options and services.