Posted by Elliot Kravitz, ATP

Finding Solutions to Your Retirement Worries

Finding Solutions to Your Retirement Worries

A possibly rewarding and calming period of a person’s life is retirement. A new set of challenges arise as the transition began and this could lead to nervousness or feeling worried. The questions arise, especially with health care costs, keep your money lasts and avoiding debts.

To guarantee a smooth change to retirement, establish the basis on the financial foundation. The four largest concerns on financial, retirement and handling them will be tackled below. 

Paying for health care

Retirement concern for Americans is the healthcare costs. There are a lot of people that their medical expenses will be too expensive. Expensive medical cost is the concern of almost ¼ of the people, however, only a few people that will almost retire has an assessment of the projected healthcare cost. 

Plan now for the health care cost is the thing to do for the unforeseen medical expenses that could derail retirement preparation. 

Saving Enough Money

According to the survey, today, nearly 25 percent of all 65-year-olds will live until 90 years old worries if their money will outlast until then. 

Reductions of retirement concerns are possible through projecting the estimated money to ensure long retirement. Usages of the Personal Retirement Calculator to check if the person is still on the track are available online. Taking advantage of catch-up contributions to retirement accounts and adjusting asset allocation to meet your changing circumstances are the different ways to improve your savings

Increasing savings on both general and healthcare

If the person has a lot of money invested in retirement, then he is guaranteed that he can pay his bills. There are options available online for older workers on the retirement savings plan if boosting investments is a little delayed. 

In the recent year, $7000 is the maximum that a 50 years old or older can deposit in an IRA while $26,000 for 401 (k). Furthermore, for young workers, limit is $6,000 in an IRA and $19,500 for 401 (k). Assuming, you have 401 (k) and during that time, your investments generate a relatively conservative 5% average yearly return, so it will leave you an extra $ 143,668 on top of what you've already saved if you reached the peak at the current level, given that you are still five years away from retirement.

Optimizing Health Savings Account or HSA if already eligible to participate in one, not just maximizing IRA or 401(k) contribution would reach up to $3500 this year for oneself while $7,100 on behalf of a family. An additional of $1000 on top of whichever limit she or he is qualified for, will be received by an individual once he or she has reached 55 years old or older. The money used to invest in healthcare spending can be brought until retirement since it does not expire. 

Maintaining an income flow

Daily expenditure would be worrisome for the 8 % of the Americans and they are also worried that Social Security won’t be adequate for their expenses and needs. 

Taking advantage of the available pensions and benefits through income planning retirement, bear in mind that working for even just a few more years might help suspend drawing income from Social Security and savings. Information is available online on how it can affect retirement income. 

Having too much debt

The average 65-year-old had more than $48,000 debt in the year 2015, while it is less than $34,000 in 2003. Having too much debt in retirement is the concern of 1 out of 10 Americans. In this period, all borrowers between 50 -80 years old has increased by about 60%. Debt increased by about 60 % for all lenders between 50 to 80 years old, during this period. 

There are a lot of ways available in tackling debt and also strategies for paying the debt off. A credit counselor could help if the debt is too large. 

If you’re struggling with finances, consider consulting a financial advisor who can give you advice on how to better handle your money as well as grow it and pay off your debts before you retire. A financial advisor will help you see the errors or wrong decisions you make throughout your life and will help ensure that you retire comfortably. Consulting an advisor as early as now may help you decide on healthcare spendings, savings, making money, and ending painful debts.

Elliot Kravitz, ATP
Contact This Member