Are you a senior preparing for retirement? Or, maybe you’ve recently retired? Either way, you’re probably thinking of ways to manage your finances and ensure you stay comfortable over the coming years. To make your planning a bit easier, here are a few simple ways you can make a big impact on your financial future during retirement.
Know Exactly How Long Your Retirement Funds Will Last
If you saved for retirement, you’ve likely given some thought to how much you need to stay comfortable. But many retirees don’t think about how withdrawal plans will actually impact their retirement funds. You may want to set up a plan that allows you to raise your withdrawal percentage ever so slightly each year, to keep up with inflation as the years pass. It’s also smart to have a detailed knowledge of your expenses and reasonable expectations as to how those could change. Factor in unexpected events such as long-term care for illness or injury into your retirement financial plan, so you can accurately set withdrawal goals.
Learn About Medicare
When it comes to setting up your financial plan, it’s a good idea to take your healthcare needs into consideration. For example, will you get by on Original Medicare alone, or will you add a Medicare Advantage plan to help with things like dental and vision coverage? Medicare can easily become a complicated affair, which is why it’s important to learn as much about it — including what it does and does not cover — before making any solid decisions. Thankfully, there are countless online resources that can steer you in the right direction and help you make a choice that fits your needs.
Work With an Experienced Financial Professional
Consulting a financial advisor before retirement is a wise money move. But if you don’t have an advisor yet, it’s definitely not too late to benefit from working with one. Find a financial professional as soon as you begin making plans for your retirement funds. Your advisor can work with you on creating a budget and financial vision that will keep you comfortable and content during your retirement. They can also help you figure out how your retirement income will be taxed, saving you the stress of dealing with these rules yourself.
Review Your Life Insurance Options
One of the items you should review with your financial is your life insurance. Your advisor can compare your policies to your financial needs to determine if selling your life insurance policy to free up cash is a smart move for you. Depending on your coverage, you may actually have more than enough to cover your final expenses and keep loved ones comfortable. Or, it may make sense to sell a policy to provide more funds for your retirement. Go over all of your options with your financial advisor. Even if you don’t sell right away, you’ll have peace of mind of knowing you do have options to get cash in the future.
If you haven’t already, now might be a good time to look into whether final expense insurance is a smart option, which will help cover the cost of your funeral/burial, as well as any lingering debt you might leave behind. Many seniors choose this option because of its price and the ability to give their loved ones peace of mind in the event of their passing.
Find Simple Ways to Save
When you are planning on relying on retirement funds for the rest of your years, it makes sense to find ways to save. You don’t have to be overly frugal with your finances to add a little padding to your bank accounts. With simple everyday choices, you can tuck extra funds away for a rainy day. Or, you can set aside some extra money to enjoy a few trips here and there. Start a garden or grow the size of your own, to save on the rising cost of produce. Gardening is also a wonderful stress-reliever, making it the perfect hobby to pick up during retirement. There are several simple ways you can save during retirement, without making much of an effort.
Get Your Estate in Order
No one likes to think of the end of their life. But this is an important element in securing your financial plans for retirement. Getting your estate in order will give you and your loved ones a little added peace of mind in the coming years. You can work with an advisor or estate attorney to decide where your possessions and wealth will go upon your death. Put your wishes into a will to guarantee they are carried out when you are gone. Also, have a conversation with your spouse and loved ones about your final wishes, so they have less to figure out later.
Staying in control of your finances is a good way for seniors to stay content and stress-free during retirement. By taking time to understand your finances, and working with an advisor, you can take the stress out of managing your financial future and spend more time enjoying the best years of your life.