Even if you think you’re taking all the necessary steps to secure your retirement funds, there are a few facts about retirement that might surprise you and make you re-think your existing plan.
1. Spending Your Savings Can Be a Challenge
It may be hard to believe, but many new retirees actually have a hard time spending their retirement money. They know how hard they worked to ensure that they had enough saved for retirement, so once the time comes to use those funds, they’re understandably hesitant. Don’t be surprised, then, if you feel the need to justify every purchase when you first enter retirement.
2. You Need Continued Investment Growth
Even once you’ve got enough saved for retirement, you shouldn’t stop. You never know what changes may arise during the course of your retirement; you may find yourself faced with large, unexpected expenses that may deplete a decent portion of your savings. Did you know that between 1991 and 2007, the number of retirees who filed bankruptcy jumped 178%? Don’t become a statistic; set up a retirement plan that will allow you to continue making money even once you stop working.
3. You’ll Probably Still Rely on Social Security… A Little Bit
About 86% of current retirees receive money from Social Security. However, with the average monthly Social Security payout totaling just over $1,000, that’s not a livable wage for most retirees. Therefore, you won’t want to rely solely on Social Security income to finance your retirement. Set up your own retirement plan, especially if you are still 10 or more years out from retirement (see point #5 below).
4. Medicare Isn’t Going to Cover Everything
Many people think that once they hit age 65, they can ditch their insurance and rely on Medicare to pay for their health needs. Unfortunately, this isn’t how things work. Medicare will cover some basic health needs, but it’s recommended that retirees have long-term care insurance in addition to some form of medicare supplement insurance to ensure they’re adequately covered.
5. More People Are Retiring Than Ever Before
It’s estimated that for the next two decades, there will be about 10,000 Baby Boomers retiring in the United States each day. This also means that Social Security is going to be strained, possibly even depleted, by new retirees. Once again, you need to have your own sustainable retirement income in place rather than relying solely on Social Security income.
6. Increased Life Expectancies Are Complicating Things
Finally, with life expectancies being higher than ever, many retirees have found that they didn’t save enough money to fund their golden years. As a result, more than seven million people over the age of 65 are currently seeking work to fund their lifestyles because they didn’t save enough.
The thought of saving enough for retirement may seem daunting, but by having a team of experts from First Coast Wealth Advisors on your side, you’ll be well on your way to a successful and stress-free retirement. Give us a call today to review your retirement goals. We can help you make sure you don’t outlive your assets in retirement.