Surprising Retirement Facts You Didn’t Know
How well prepared are you for your retirement? You may not be as well prepared as you think.
What if we told you that marital woes, boredom and depression often come with retirement? Would you be surprised? Of course you would!
Most retirees look forward to having more free time, less stress and to live a better lifestyle. However, concerns such as health, boredom and even depression are common in retirement. In fact, in retirement, you may be unaware for some surprises you haven’t prepared for.
You won’t be as independent as you think you will.
Here’s the thing most retirees don’t realize. You will need help during your retirement!
For example: Social Security. Unless you have been a stellar saver, you’ll need to rely on social security as a source of alternate income. In fact, most retirees rely heavily on Social Security as a source of income. According to US News, 86% of retirees receive income from Social Security – and payments make up at least half of the retirement income of roughly 65% of retirees.
Saving money won’t be easy.
Especially after spending years and years with a savings mentality. The more time you spend stashing away your funds to retire. It can become mentally and emotionally stressful to watch our funds dwindle over the years. It’s disheartening to feel like you have worked your whole life toward saving something… only to spend it. Here’s the thing, after years of spending enough to retire with, you have PERMISSION to spend you money – just spend it wisely.
You can’t stop maintaining your retirement account once you are retired.
Your end goal is not just accruing enough funds to retire. Your goal should be to develop a savings and investment plan to make your retirement account last. You do this by making smart investment choices and minimizing your risk while maximizing the growth of your portfolio. We recommend hiring a financial planner to help you manage your portfolio. For when saving money and also during your retired years.
Medicare may not cover you completely.
Once you qualify for Medicare, you should realize that all of your medical bills may not be covered. This form of health care is designed to cover a hefty amount of your medical treatments as you age. Some examples of the coverage provided would be for routine eye exams, dental care, hearing aids, or eyeglasses.
In fact, even a nursing home might not be covered after 100 days. So, if you are a retiree who requires additional long term care, you will have to find another way to pay for your expenses.
Long term care life insurance riders are one way to pay for additional medical care, or substantial rainy day fund.
Additionally, while Medicare may cover preventive care services, you may also need diagnostic tests or procedures, with additional copay and costs. Before receiving Medicare, you should take the time to understand what benefits you are actually receiving and should plan for any unforeseen/uncovered costs that may arise.
Your Free Time Will Change.
Drastically. The first change will be to figure out what to do with your free time. Roughly 44% of Americans over the age of 65 live alone, according to the U.S. Census bureau. Without that daily social interaction the office environment provides, you may find yourself at a loss with how to fill your day. This is why you should prepare yourself for your free time – and lots of it.
Hobbies, friend groups, volunteer positions and even part time jobs should be considered as options to mitigate the boredom you might experience once you are retired.
Additionally, the way you spend your time may change if you are single. The divorced, unmarried or widowed population of retirees are dating during their retired years. And if you weren’t a “TV Person” before retirement, you may be one now: most retirees spend over half of their leisure time watching television.
You may also spend your time reading, volunteering, relaxing, or dining out more than you used to. Preparing for these transitions can make it easier to prioritize your time and focus on the plans you made for your retirement years, such as travel.
Retirement is not just about your financial plan. There are so many more components to your retired life than how long your pension plan is going to last. The less you are worried about finances during your later years, the more time you can spend focusing on your leisure time.
You’ve earned your retirement and you deserve to enjoy it without financial woes. Give us a call today to find out how you can start saving for your later years.