Advice for Seniors: How to Avoid Running Out of Money
Retirement is an accomplishment that marks years of hard work and for many, relentless saving. Many retired older adults rely on their savings to support them throughout the duration of their remaining years. This means something different for each person. Some might plan to move into a retirement community, while others have financially prepared to hire outside help. No matter the preference, it’s important to have a plan that you won’t outlive.
Here are some tips when it comes to planning your retirement:
Save, Save, Save
We hear it everywhere: start saving as much as you can, as early as you can. Some theories say that you should start building your retirement fund in your twenties, or at the start of your first fulltime job. An employer sponsored 401K plan helps maximize your savings by allowing you to set aside pre-taxed money.
There are restrictions on a 401K including penalties for taking it out and limitations on how much you can save each year. However, for employed adults, a 401K is the safest way to save a large amount of money.
Know Your Plan
We all know plans change! But, when it comes to saving for retirement, having a plan is crucial, even if you have to keep readjusting it. Having conversations with your spouse or adult children about your plans for your retirement is extremely important. Think about where you see yourself in your later years, what kind of care you want, and how you’d like to live. Do you want to travel? What kind of living arrangements are important to you? Answering these types of questions will help you understand what kind of lifestyle you will be living and how much you should be saving.
Be Goal Oriented
Setting goals and working toward them will help you stay on track when it comes to planning your retirement fund. Goals should be concrete and challenging, but acceptable. Goals might include opening a saving account for your grandchildren, or, saving a certain amount each month. Celebrating these goals will make a difficult task more enjoyable. Saving for your retirement is not easy, but it’s crucial to your future.
Running out of money can be a scary reality for many people. At our Carespring Nursing Home and Skilled Rehabilitation facilities in Dayton, Cincinnati, and Northern Kentucky, we’re always working to provide the best care to our patients throughout their retirement. When it comes to saving, what works for you?