Looking at the latest retirement news can help you adequately prepare for your next phase of life. Retirement should be a relaxing reward for a life of hard work. It should also be a time to fully enjoy the fruits of your labor. Unfortunately, retiring today has posed many new challenges that previous generations did not have to face. That’s why it is important to plan your retirement around your financial situation and the potential new expenses that your golden years might bring. Below we discuss some of the recent industry trends and what you should know before you retire.
Higher healthcare costs for retirees.
Healthcare is a costly expense that can easily whittle down funds in your bank account. Today, the average couple looking to retire needs a sum of money north of $300,000 to cover healthcare costs throughout retirement. This figure begs the question of whether you should consider working for a few more years, downsizing, or selling a few assets to obtain some extra money. You may want to consider continuing to do some part-time work, or perhaps doing some freelance work depending on your particular skill set and profession.
Compare different healthcare plans.
There will be plenty of healthcare plans you can look into. Each will offer a different premium and some might offer a price that works well for you. When deciding on a plan, consider the cost of premiums, as well as deductibles, copayments, and coinsurance. Even though some of the costs may be more competitive than others, it is important to keep in mind that finding the plan with the best premium may not be the best option for you if it does not cover all of your medical needs. Look closely at each plan and find the one that includes the doctors, services, and medicines you’ll need.
Start saving now.
Put off that vacation you’ve been meaning to take for now and focus on saving as much money as you can. Even though some insurance plans may reduce the amount of out-of-pocket costs you’ll have to pay, you will still need to dole out some extra money from time to time. Try not to buy anything that will depreciate in value, like a new car. You may consider selling a few assets that you’ve been holding like valuable stocks or artwork you’ve collected. We recommend consulting a professional to help you arrive at the best decision.
Continue to pursue a healthy lifestyle.
Put an emphasis on daily workouts and eating a proper diet. The best way to reduce your medical costs is to stay as healthy as possible. Reduce the amount of junk foods, alcohol consumption, or any unhealthy habits you’ve developed. We recommend you consult your doctor on the best way to live a balanced and healthier life.
OWLFI specializes in retirement planning, taxes, accounting, and select insurance, including home, auto, and commercial insurance. Our team brings a vast array of different professions and perspectives together to ensure success and the prevention stress for our clients. OWLFI is dedicated to serving our clients with diligence, determination, and professionalism. To learn more about us, please visit www.owlfi.com.