Retirement is, for many, the ultimate end goal capping off a career. Originally envisioning a perpetual daydream of pursuing any number of pleasures, many are surprised to find retirement comes complete with its own set of challenges, some of which may already seem familiar. Retirement is and can be an incredible, rewarding time in life. Still, surprises may lurk, threatening to gum up the works. Knowing what to prepare for ahead of time can help assure the retirement you’re looking for. Get to know some of the biggest retirement surprises so you can plan to approach and overcome them.
Living costs can add up.
Owning a home costs money, even after the loan is paid. Repairs, property taxes, and upgrades all dip into retirement savings. Replacing appliances, hiring contractors, and maintaining the grounds can consume more money than many initially plan for. For those renting, rates may be subject to annual increases. Over time rents can become prohibitive, necessitating a move. Moving to a new residence costs money. Plan ahead to respond to ongoing living expenses and better prepare for retirement.
Physical disability can be financially disabling.
The aging process is inevitable and many retirees become disabled during retirement. Long-term care can be incredibly expensive and may require inpatient or in-home care. Long-term care insurance can help cover the costs associated with ongoing care. Too often retirement comes early, in the form of disability. Long-term disability insurance is another safeguard available, aiding with income replacement and more in case of tragedy. For more on long-term insurance for helping stabilize retirement, call an advisor today.
It may be necessary to go back to work.
This sounds like the opposite of retirement, yet for a growing number of retirees going back to work is the right move. For most, choosing to work after retirement is for financial or social purposes (or a combination of the two). A job after retirement can help offset living expenses and offer a social outlet as well. Depending on previous experience and personal desire there may be part-and full-time jobs available. Some retirees manage to find part-time jobs with previous employers for a seamless transition back to the workforce. Look to personal talents and find the right match for you.
Healthcare costs can climb.
While Medicare offers advantages for retirees seeking competent healthcare, it only goes so far. The costs for many appointments, checkups, and over-the-counter remedies falls to the retiree. As time goes on, health issues may arise demanding an increased number of visits to doctors and other medical professionals. Transportation to and from visits requires resources. Time spent at the doctor limits the amount of time available for earning income, affecting savings in more ways than one. Taking proactive steps to improve personal health today can help prevent or delay the onset of illness and more.
It may come as a surprise.
Beyond disability, some folks are retired early by their employers. When retirement chooses you, responding can be a stressful experience. Even the best plans can be shaken by forced retirement, interrupting the original retirement schedule. Transitioning to retirement is challenging enough for those with a plan in place. Shifting into retirement by surprise can be so tenfold. If retirement comes knocking early, contact a financial advisor to craft a response plan. Anytime life throws curveballs that affect finances, albeit positive or negative, an advisor can help create a plan for responding intelligently.
It’s simply another phase of life.
The hardest fact to share is that retirement, although an amazing time of life, comes with many of the same obligations as before. Monthly bills, financial decisions, and much more make financial awareness just as important during retirement, perhaps even more so. Choosing when to retire, when to access Social Security income, and how to plan for the future can be daunting. Get a second opinion by contacting a financial advisor. An advisor can help explain the options available, and any benefits or drawbacks to accessing income.
The final surprise is that even with financial obligations, changes in health, a new routine retirement is one of the best aspects to life. Transitioning to retirement is challenging for nearly anyone; don’t hesitate to reach out for assistance. Replacing employment with an open social calendar can be more demanding than it may sound. Changes are easier to face with a plan in place for responding to them. There’s more to retirement than saving money (although that’s certainly a large part of it). For more information on planning to pursue a successful retirement, contact the Wealth Advisors at Overland & Shanahan today (www.OverlandShanahan.com). Spend more time enjoying retirement with a comprehensive retirement financial plan.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.