How to Financially Prepare for Old Age
Being prepared financially for old age is something that everyone should be working on from the minute they get their first real job, but most people do not. Preparing financially for senior years is critical. Being in a good financial position can mean a worry free retirement where you can afford good health care, and to live the lifestyle you have dreamed of for your retirement. How should you prepare?
Looking Toward The Future
Admittedly it can be hard to think about retirement when you are thirty years old, but it is coming faster than you think. Having a plan for your future is essential. Start planning early by speaking with a financial advisor. You do not have to be a millionaire to take advantage of a financial advisors services.
What if you are late to the game? What if you are in your late forties or early fifties is there still time to get your finances in order? Yes, but you will have to step up your game. Designing a plan based on where you want to be in your old age financially should start as soon as possible but it is never too late to get started.
When you are considering your plan be sure that you are considering how you will manage health care costs. Medicare is a government health insurance plan that most seniors subscribe to. Medicare helps provide financial and health security to about 60 million. Medicare also provides health care insurance for younger disabled people.
Planning for potential illness and disability as you age is vital. Many seniors suffer from common health problems for example about one out of four people over the age of 65 will often have to deal with hearing problems. Medicare does not cover the cost of hearing aids, which means you will want to have the finances available to cover them.
Planning for how you will pay your bills and cover unexpected expenses as you age is important. Your finances in old age will affect how you live, where you live, your health, and more.
Other Planning Considerations
As you age you may have to make some changes to your home to make home a safer place to age. The CDC estimates that about 25% of people over the age of 65 wind up falling down and suffer a serious injury or death.
You may have to add some safety features to your home like shower handrails, shower seats, and even a stairlift to get you up and down the stairs. Preparing your home for your senior years will take some investment, but will be well worth reducing the risks.
How Much Should You Save?
According to the experts you should be saving 10%-15% of your income for retirement. Putting this amount of your income into savings will give you the cushion that you need to retire comfortably. There are benefits to saving for retirement that you can benefit from right now. There are tax benefits you can take advantage of by saving part of your income.
If you are getting a late start, consider putting a higher percentage of your income into savings can help you catch up. If you waited too long to start saving for retirement there may still be other ways that you can raise some cash for your retirement.
You can downsize and sell your home to raise some cash. Moving into a smaller home will cut your costs and make it easier to take care of your home. If you have been in your current home for a long time, you will probably walk away with a nice stack of cash that can cushion your nest egg a bit.
Money Can Make a Difference As You Age
Having enough money to live on and take care of your health is essential to being happy as we age. It is never too late or too soon to think about your financial future.