Today many people across the nation are living at a poverty level or on a very limited budget. Living paycheck to paycheck is not uncommon for the elderly and with the added expenses of medication, transportation, and more, it can be challenging to set money aside for retirement. In addition, the current financial strain is affecting every generation, not just baby boomers and those looking to retire in the next 10 years. This has lead many seniors to find new ways to save money and make the most of what they do have.
Regardless of the current financial climante experts are still recommending for Americans to start saving for retirement as soon as possible. This is where many feel hopeless with large outstanding debts, meeting their current needs, and also being able to save for retirement can seem overwhelming. It can be hard to choose what to prioritize, and it is difficult to think about the future when there are pressing issues and so much uncertainty in the now. The good news is that there are still ways to save money for retirement, even when the economy is not looking strong.
The first step to take depends on how old you are and how much time you have. If you are between 40 and 50, it is imperative that you have a clear plan, strategy, and get clarity on your retirement goals and vision. Keep in mind that you need to look at both your needs and your wants. There are many important questions to ask yourself. For example:
- What are your top priorities?
- Is there are hobby you want to take up?
- Do you want to travel?
- Will you have family support?
- How much money do you estimate you will need?
- Have you considered the living cost in a different state?
- Are you thinking to buy or rent?
- Do you want to start your own business?
- Are you healthy enough to live on your own?
- Is a nursing home a better option for you?
- Will your spouse be able to split the cost?
It is a good idea to look at what type of lifestyle you are living today and to asses what could be eliminated or reduced. People who have a spouse when they retire, tend to do much better than single retirees. Having two sources of income, resources, and family support, tends to lighten the situation. If you are single, it would be a great idea to find a friend whom you could retire with for extra social and financial support.
Next, look at how much will it cost you to survive with the basic necessities, including food, housing, bills, medical expenses, and transportation. There are simply things that cannot be eliminated or reduced and it is important to have a snapshot of what your budget will look like when you prioritize your basic needs. You can include some wants like clothing, travel, or other leisure activities and find creative ways to make a budget for them as well.
Finally it is important to check your progress and asses your banking accounts, annuities, investment accounts, stocks, insurance policies, properties that you own, or any other source of income that you may have. Is there a way to increase it or extend it in some way? Some seniors choose to work part time after retirement for the social interaction and additional income, it is always a good option if your health permits. Another idea is to start your own business and create another source of income on the side, again, even if it is on a part time basis. If you have specific skills or are very knowledgeable in a certain trade or activity, consider holding classes or creating videos to profit from your knowledge and keep yourself sharp.
Keep in mind that no matter where you are in your retirement planning, it is always recommended to have an insurance policy in place. Some people use it as a way to cover funeral expenses, others as a way to protect their kids and grand kids, still other use it as a way to protect their spouse or surviving siblings. In addition, some life insurance policies have the flexibility to pay out early ( before you pass away ) due to serious terminal diseases like cancer. Having the peace of mind of being covered no matter what life throws your way is definitely worth it. Life insurance can make a big difference for your family, and also helps to cover you from the unexpected. Click here to get in touch and request more information.