Financial Steps for Retirement Living

Joan B. Reid

50plus Magazine

 

Retirement is daunting, and a leading concern is funding it. To prepare financially for retirement, one should start saving years in advance. Simple, right?

 

Let’s be real.

 

First, let’s level the playing field. You will receive Social Security and possibly a pension. These provide a revenue stream you can rely on for monthly expenses.

 

Next, review your savings, stock, 401K, and possibly a home. Consider yourself well prepared if you have these assets. Not everyone has even one of these financial resources. Further, some retirees don’t own a home, instead paying hefty monthly rental fees, never accumulating equity.

 

Medical care certainly influences retirement preparation. At 65, you become eligible for Medicare. Some are fortunate to also have lifetime employer health benefits. Not everyone has dual benefits and many cannot afford a monthly premium. Regardless, savings and other assets will be chipped away with doctor copays, medications and preventive tests that may be partially covered by Medicare. Like the commercials say: “And the rest is up to you.” Ever try to budget medical expenses from a fixed income? Not easy!

 

To prepare financially for retirement:

• Start saving in your 40s, 50s, 60s
• If your home is paid for, learn about reverse mortgage
• Take advantage of employee healthcare while you have it
• Eat well, exercise and watch your weight
• Don’t smoke. Bad for your wallet and health
• Consider working part time

 

Finally, a smart way to prepare for a financially successful retirement is to enjoy the things in life that have no price: your health and your family.