After working for decades, it’s easy to look at retirement as a chance to slow down and take it easy. The retired phase of your life, however, could also last for decades, too, particularly if you’re college educated and enjoyed a steady job with benefits for most of your life.
Then the question becomes: will your money last as long as you do?
Many older adults are now caring for their own parents or loved ones who are well into their 90s. How do you plan for retirement that could last 25 years or more? Here are some points to consider that can help keep your nest feathered and fluffed enough to weather even a longer-than-average life.
According to the Consumer Expenditure Survey, the average American household age 65-74 spent an average of $49,477 per year on living expenses (housing, food, entertainment, utilities, medical expenses, etc.) If you live 30 years, you’ll need somewhere close to $1.5 million to cover your living expenses as you age.
One way to ensure you have enough to live comfortably is to maximize your sources of income, such as:
- delaying Social Security benefits until age 70 to ensure you receive the most income possible from the program.
- not beginning pension benefits while there is a reduction for early retirement.
- working full- or part-time until at least age 70 to add to your savings.
While an early retirement can be tempting, there is a great possibility that your retirement could last 25 years or more. Every year you work and delay Social Security benefits you also reduce your consumption of your retirement savings.
Choosing a Life Plan Community like Paradise Valley Estates is another great way to control your living expenses. With predictable monthly expenses and onsite health services, your home also covers costly living expenses such as most utilities and property taxes.
To learn more about the value of our inclusive financial program, contact us today.