The Major Financial Concerns of Retirees
August 28, 2023 Author: Tess Downing, MBA, CFP®, Complete View Financial
Retirement can be a stressful financial time as income flow slows down and work ends. Preparing for this time of your life is essential, and planning for the retirement lifestyle you seek is critical. Although not the topic of this blog, one main concern of current retirees is the physical elements, which include losing self-reliance, physical agility, and mental agility. These are essential to consider when preparing for the next stage in your life. To help take some of the mental stress off you, Complete View Financial has come up with recommendations for some of the retirees' most prevalent financial concerns.
Financial Concern #1: Becoming a burden on family
Retirees are scared that they will become a financial burden on their families once they hit the stage of life where they might need physical care and potentially assisted living. Caretakers and facilities can be expensive, especially at the beginning of the process. To combat this, in your pre-retirement years, ensure that you have factored some long-term care into your savings plan. Save enough money to get the payment for this care started so you don’t have to rely as much on your family. If you’re already retired, a financial planner can help you organize your assets to find the best option.
Financial Concern #2: Not having enough money to live comfortably
People are scared that they will not have enough money to live the life they want to during retirement. Further, people underestimate just how much it costs to live during the retirement stage of your life. Medical costs may be higher than expected, travel prices may increase, and inflation may cut into the value of your money. In the pre-retirement stage, strategically maximize the amount you’ll receive from social security. Also, map out the lifestyle you want to have in this next stage so you can understand how much you will need to save to accommodate that.
Financial Concern #3: Not having enough money to cover medical costs
Basic Medicare only covers about 80% of the costs for hospitals and doctors, so it is vital to have a plan to protect the other 20%. It’s easy to get swayed by the advertisements for each project. Therefore it’s essential to consult with a financial advisor who knows more detail about each plan, which can help you make the best decision for yourself now and in the long run.
Planning and speaking with a financial advisor can avoid these financial concerns. You should be able to enjoy retirement and get started on these goals fast to ensure you have a lifestyle you can look forward to.