Sunday, February 22, 2015

Ten Facts About Retirement Savings

Most retirees are ready for free time and less stress in retirement, but some aspects of their retirement can become unexpected. They also have high financial and health concerns, and the extra free time is only fun if you're able to use it well. Below are Ten ways retirement might surprise you.

1- It can be easy to spend all of your savings.
After many years accumulating enough money for you to retire, it can be psychologically and emotionally devastating to spend that money and see how your nest-egg shrink each year due to illness like Long-Term Care.
Investments growing

2- You need to keep investments growing.
Being able of Saving for retirement is not your end goal at all. You also need to develop a plan to make your money last for the rest of your living years. You also need to understand how you can minimize the risk of your investments, you need a strategy that gives you an opportunity to growth without taking any risk staying ahead of inflation and taxes (e.g. Annuities).

3- Most retirees rely on their Social Security only.
Social Security (SS) is mainly the source of income for the vast majority of retirees. About 86% of retired seniors receive income from SS, and their Social Security payments make up at least half of their retirement income of 65% of retirees. The majority of seniors don't have any other source of income than Social Security, and in December 2014 the  monthly average of their paycheck from SS was about $1,282.

4- Medicare just cover part of it.
Medical bills do not go away once you enroll in Medicare. Even though Medicare covers a large amount (80%) of  your medical treatments as a senior, there are other services that are not covered (e.g. routine eye exams, eyeglass, dental care, long term care or hearing aids) just to mention a few. Medicare only covers up to 20 days in a nursing home without you paying anything (for each benefit period), Days 21–100: $157.50 coinsurance per day of each benefit period and Days 101 and beyond all costs are on you.
Medicare coverage
Retirees who require additional long-term care will need to find another way to pay for it, like buying a Long-Term Care Insurance policy from a private Insurance Co.; I really suggest you find a local Insurance Representative before you join Medicare because you really need to comprehend what benefits you will receive from Medicare when it comes to your Health and understand how it will cover any ongoing or post health issues. If you lives in New Jersey you can contact me and can review with you how Medicare works in the state.

5- Chances are you might spend some time by yourself.
With no schedule or job to commute daily, you can find yourself spending a lot of time alone. According to U.S. Census Bureau data about 44% of seniors 65+ live alone. I suggest you join a volunteer organization in your local area that doesn't require you to travel so far from your residence, in other words stay active within your community.

6- Dating is another choice seniors encounter.
Senior retirementEven though 55% of seniors 65+ still married, there are some that are not (28% widowed-12% divorced-1% separated-5% never married) according to census, as a result these seniors start meeting new friends and also dating in some cases. There are several sites online that focus on seniors 50+ that help them meet new people, friends and even dating.

7- Moving can become a nightmare.
It may sound attractive, but the reality is that the majority of seniors do not relocate, between 2009-2013 only 5.7% of seniors 65+ moved to a new house, but the grand majority did within the same state or county, only 1% moved out of the state their live and just 0.3% decided to move outside US (overseas) the census said. Moving to a new community in your retirement means leaving behind friends, family members and a system in place that can be difficult to rebuild elsewhere.

8- Usually help from others is needed.
We all know aging is part of our retirement years in which we might lose some independence and usually is not fun or welcome for every senior. There may come a time when you are not allow to drive your car anymore, shovel your house driveway or a simple task as climbing on a chair to do some DIY around the house and eventually need help with meals and bathing. Although the beginning of retirement is often full of fun and adventures, it’s also a good time to make
contingency plans for later down the road when you might not be able to care for yourself.

9- TV is the main entertainment for seniors.
Seniors spend more than ½ of their in-front of their TV, ages 65-74 watch around 3.92 hrs during the day and the ones 75+ average about 4.15 hrs daily according to the American Time Use Survey conducted by The Bureau of Labor Statistics.

10- There's no need to hurry.
In comparison to the general population, seniors 65-74 take longer eating, working at a DIY project around the house or in the backyard or even shopping. But contrary to young people retirees spend more time reading, relaxing and volunteering.

Happy Retirement

If you live in New Jersey and have any question feel free to contact me....

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