For many people, preparing financially for retirement begins when they start working and putting aside money into a 401k. However, this isn’t often enough and many people fail to put in enough to sustain a comfortable quality of life when they do reach retirement age, even with the affordable assisted living options available. When it comes to senior living, it’s important to make sure you properly prepare from a financial standpoint.
Most people seem to set their 401k contributions and dispersions and then forget about it. However, this can create an issue when the market isn’t performing well and it certainly doesn’t account for inflation and a number of other factors. It’s important to take a good look at your investments, whether it’s your 401k, a private IRA or another private investment option, and make adjustments. The closer you are to retirement, the less aggressive your investments should be. Talking to a financial advisor can help you plot out the best steps and map the most appropriate changes as you get closer to retirement age.
If you take a good look at your Social Security statement, you will notice there are various tiers for entering this aspect of your retirement. Each tier offers a higher payout. However, once you apply for your Social Security, you will be locked into the tier at which you enter. Your payments won’t go up as you reach the age for the other tiers. At the current time, seniors can start drawing from Social Security starting at age 62. However, if you are healthy, it’s best to wait it out so you can lock in a higher payout, which occurs at 66 and then again at 70. The longer you can wait, the more financially stable you will be in your senior years.
No one knows how long they will live, which can make spreading your retirement money out difficult. Many people have big dreams about their retirement years, which often include travel and participating in activities they previously didn’t have time for. However, it’s important to pace yourself with your money. Don’t spend too much too quickly, leaving you with nothing when you need assisted living for seniors in Oklahoma. Beware of scams and always check with someone else before you make any financial decisions.
Affordable assisted living can be found, but it’s critical to make sure you leave room in your budget for it. You may be fine living on your own for a period of time into your retirement, but there will come a time when senior living assistance is required. It’s also important to make sure you understand what is and isn’t covered by Medicare so you can plan for your future medical costs as well.
Whether you’re nearing retirement or you’re just thinking ahead, contact us. We can help you determine the best way to finance your assisted living needs in the future.