You’ve been grinding and saving for years, eyeing that chill retirement life. But here’s a curveball: what if you outlive your savings?
Is Your Long-Term Care Game Strong?
Long-term care can be a money drainer! Stats reveal over half of 65-year-olds will need it, and guess what? It’s not cheap. On average, care in a facility cost around $54,000 in 2021. And relying on just your savings for this? Might be a risky move.
But there are ways around it. Long-term care insurance, hybrid policies, or even certain annuities can be your safety net. Getting advice from a pro in long-term care planning is the way to go.
- Did You Guess How Long You’ll Be Around?
Living to 100 sounds cool, but did your retirement plan account for that? The Social Security Administration states a third of 65-year-olds might hit 90! So, if your retirement stash is planned for 20 years, but you end up chilling for 30, there’s a 10-year gap to fill.
Tip: Check out the life expectancy calculator at Livingto100.com. And mix up your income sources in retirement. Have investments, and maybe even consider a fixed annuity.
- Healthcare: The Silent Wallet-Eater
Healthcare in retirement? More expensive than you might think! Basic healthcare costs can shoot over $250,000. In fact, a couple kicking off retirement in 2022 might need a whopping $315,000 just for medical stuff.
The fix? Factor in these wild healthcare costs when you’re planning. Also, once you hit retirement, make sure to pick the best Medicare plan that suits you. Sometimes, spending a bit more upfront can save you a bunch in the long run.
Curious about the other signs and how to dodge them?
