While a lot of people tend to retire when they are eligible to receive pension benefits, retirement may be the source of a lot of concern when it comes to decisions and concerns that affect it.
Factors that affect retirement decisions
· Social security. In many countries around the world, people are bound to retire at the normal ages of the public pension system (for instance, ages 62 – 65 in the U.S.).
· Amount of wealth. Greater wealth is observed to lead toward early retirement since these individuals can easily purchase additional leisure.
· Health status. Research widely shows that people in poor health generally retire earlier than those in good health.
· Marriage. On average, husbands are 3 years older than their wives in the U.S. it is found that wives and husbands coordinate their retirement such that wives are more likely to retire if their husbands are retired and vice versa.
Top concerns on retirement and how to tackle them
Though it has the potential to be a fulfilling and relaxing segment of life, retirement also comes with its fair share of challenges that definitely raise concern. How do you make your money last long? What is the best strategy to collect on your social security? How will you manage health care costs?
1) Pay for health care
Research shows that health care expenses are are one of the top retirement concerns for people aged over 50 years. However, only 1 in 6 retirees have an approximation of how much they need to accumulate in health care costs. Unforeseen medical expenses have the potential to derail years of retirement preparations. Discover the strategies you can take to be ready for your health care costs right here: https://www.merrilledge.com/guidance/nearing-retirement/health-care-costs?src_cd=bac_fined
2) Maintaining an income stream
Quite understandably, outliving your savings is a major concern for a lot of retirees. Consider taking a job even if it is part time as this may help you to suspend drawing funds from your savings and social security while you still enjoy the benefits and pensions.
3) Save enough cash.
According to the Social Security Administration, almost 25% of 65 year olds will live to the age of 90. It is possible to reduce retirement anxiety by approximating how much you will need to save to keep you safe for a long retirement. Then, look for ways to boost your savings by use of methods such as starting early and adjusting your asset allocation as per your changing circumstances.
4) Collecting on Social Security
Timing is everything when it comes to social security. Suspending until retirement age or beyond to collect your funds increases your monthly benefits. More specifically, there are additional factors you need to take into consideration such as life expectancy, your own goals and how the system works so as to come up with the most ideal strategy on how to collect on your funds.
Retirement doesn’t necessarily have to be about slowing down. Other than being the time to relax and enjoy your life works and achievements, it can also be about having the time to experience the things you have always wanted to. Early planning sets a solid foundation for your financial security while working to ease your retirement concerns hereby allowing you to focus on this brand new stage of life.
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Last update on 2017-12-15 / Affiliate links / Images from Amazon Product Advertising API