Retirement is a huge change in life and marks a new chapter for many people. You suddenly have a large amount of free time, social lives change, your living situation might be different, and you will be dealing with alternate sources of income.
Question 1: How Do I Plan On Spending My Time?
This is an important question you will definitely want to answer before you retire. Retiring from full-time work frees up between 40 and 60 hours of time each week, depending on the schedule you kept. This may sound amazing to some, but it’s actually a lot of time. Here’s a list of relaxing yet productive ways to fill your time:
- Get Involved: Join a book club, a senior group, or volunteer for your favorite cause. Or participate in faith-based activities, senior groups, or exercise classes.
- Take Up a Hobby: Now is the perfect time to learn to play that instrument, write that book, or take some classes.
- Travel: Traveling can be an excellent way to fill your time while keeping your mind fresh and introducing you to new ideas, foods, and ways of living.
- Spend Time with Family and Friends: Set up weekly dinners with your family, brunches with your friends, or start a morning walking group. Stay social to keep your body and mind healthy.
Question 2: Where Will I Live?
Do you love your home and plan to stay, or have you been dreaming of downsizing or moving? Where you plan to live during retirement will have a big impact on your cost of living, how much you need to save for retirement, and your social life.
- Staying in Your Home: If your mortgage will be paid off when you retire, your cost of living may go down, reducing the amount you need to have saved before retirement.
- Downsizing: Will downsizing reduce your cost of living? By how much? Make sure you get a good idea of how this will affect your finances.
- Moving: Are you moving to a state with a higher cost of living, or a state with a lower cost of living? Are you moving to be closer to family, or for other reasons? Be sure to consider how moving will affect your financial situation.
Question 3: Have I Saved Enough for Retirement?
There is no magic number when it comes to saving for retirement. Each person has different expenses, different incomes, and different lifestyles and goals for retirement. Still, every senior must address this question before they retire. Here’s a list of different factors that affect how much you need to save:
- Your Retirement Age: Social Security benefits make up about 40% of retirees’ incomes, but the earliest age you can begin drawing benefits is 62 years old. You are not entitled to full benefits until you reach age 66 or 67. If you wait until age 70, your Social Security benefits will increase even more.
- Your Sources of Income: In addition to Social Security, what other sources of income will you have? Do you have a pension? What about regular savings? How big is your nest egg?
- Your Retirement Lifestyle: The kind of life you hope to live in retirement makes a big difference in how much you need to save. It’s a good idea to assess how you plan to live in retirement compared to how you live now to get an estimate of how much money per year you will need to live comfortably.
Question 4: How Will I Pay for Healthcare?
Every senior approaching retirement age needs to seriously consider the kind of healthcare they might need. The average couple retiring at age 65 today will have almost $300,000 in out-of-pocket healthcare expenses throughout the rest of their lives. In addition, nearly 50% of people will end up needing long-term care and Medicare does not cover long-term care. If you can’t afford to pay out of pocket, it may be wise to purchase separate long-term health insurance.
Question 5: Have I Planned for the End of My Life?
Now that you’ve thought about your retirement, what about the end of your life? It might feel a bit morbid to think about, but having a plan will relieve the stress and pressure that can surround the end of life. Ways you may wish to plan for the end of life:
- Have a last will and testament drawn up
- Get a living will or an advance directive
- Consider a power of attorney
- Make sure you’ve updated beneficiaries in your will or life insurance policy
- Plan your funeral or other final arrangements
- Ensure you have an adequate whole life insurance policy
Turn to Americo Senior Life for Your Whole Life Insurance Needs
If you want to be sure your final expenses will be covered, inquire about a whole life insurance policy from Americo Senior Life today. Americo Senior Life prides itself on offering a range of affordable life insurance options to fit your unique needs. With Americo Senior Life, you won’t have to worry about losing your coverage so long as you continue paying your premium. Plus, pre-approval takes only a few minutes to get an online quote. Get the peace of mind that comes with a whole life insurance policy and contact Americo Senior Life today.