Planning for Retirement

Retirement planning can’t be all about saving enough to see the world and spoil your grandkids, although you’ll certainly want to make sure you have the cash to do those things.

The reality is that seniors continue to face a lot of expenses after leaving the working world. Unfortunately, many people forget to factor in some of the most costly and important ones when setting savings goals.

Whether you’re decades away from giving notice or weeks away from leaving the workforce for good, you’ll want to make sure you have a plan to cover these four big expenses.

1. Healthcare

For a senior couple retiring this year, healthcare could cost around $325,000 in retirement, when factoring in Medicare premiums and out-of-pocket costs on prescription drugs. Medical care alone can be enough to drain almost your whole nest egg if you aren’t prepared for it.

So it’s a good idea to have a dedicated retirement account, such as a separate IRA or a health savings account if you’re eligible for one, with money earmarked for medical needs in your later years. You should also research all your options for care in retirement, including Medigap and Medicare Advantage Plans to get coverage well suited to your needs.

2. Taxes

Taxes don’t disappear once you’re no longer getting a paycheck. In fact, as many as half of all seniors pay taxes on their Social Security benefits while most are…

This article was sourced from the Mooresville Tribune.

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