Look for Part 1 of this article in the last issue of Tigard Life, or visit tigardlife.com/featured/reverse-mortgage.
Additional Ways to Plan for Retirement
Each person has a different idea of what retirement looks like for them, so it’s important to set goals that align specifically with your post-career plans. In most cases, it’s safer to assume you will be living off of the money you’re saving now.
Here are a few helpful questions you should ask yourself when setting your retirement goals.
What age do I want to retire?
The average retirement age in the U.S. is 62-years-old, likely because this is the earliest age you can receive Social Security benefits. Nonetheless, some workers find they have enough to retire by age 57, or sooner if they sell a business or inherit money.
Delaying retirement, even by a few years, can make an exponential difference in your savings. If you’re married, you will also need to take into account when your spouse is likely to retire.
How long do I expect to live after retirement?
Although this isn’t the most pleasant conversation to have, it’s crucial to your savings goal that you plan out enough money for the length of your life. Do you, or your partner, have health issues? Will you eventually need long-term care?
The type of care (in-home or assisted living), state, and possible medical needs could potentially drain your savings. It’s impossible to predict every potential need that could occur after you retire, but it’s best to over-prepare than live in debt.
How much monthly income will I need to maintain my current lifestyle?
According to Investopedia, the average monthly (Social Security) benefits for a retired worker in 2018 was $1,413 per month. For some, this may be enough to live on. However, for others, you’ll need to invest time and research into the amount you will need each month after you retire.
How much do you spend on groceries? Bills? Other living expenses? Vacations? If you’re already savvy with your finances, a savings calculator will be a great additional resource. If you’re not really sure where to begin, a financial advisor could be the best route for you to take while you still have time.
Make Your Plan
Recent studies show that only 26% of workers with a retirement plan feel very confident about the amount of money they (and their spouse) have saved for retirement.
If you’re confident in meeting your goals, that’s great! If you aren’t, what are your next steps to becoming financially stable in your late years? You could:
- Contribute to a 401(k), if eligible. These accounts allow you to contribute pre-tax money, which will allow you to invest more
- Open an IRA account. Choose from a Traditional or Roth, depending on your current and future financial goals
- Automate your savings
- Reign in your spending and set strict limits
- Take advantage of the equity in your home
Do you still have questions about what homeownership will look like for you during retirement? Contact a trusted, local Mortgage Advisor today to learn more.
Do you still have questions about what homeownership will look like for you during retirement? Call Tim McBratney today to learn more.