I attended a very informative webinar today from the American Society on Aging which focused on the Baby Boomers and retirement decisions which we should or will be facing. Let me emphasize one more time: begin planning for your retirement years today, no matter what age you are.
The facts are sobering: 1 in 4 adults over the age of 50 are divorced. 1 in 3 adults over the age of 65 is single. Have you thought about who is going to be able to assist you when you are ill or need other types of help? If your answer includes primarily people who are in the same age category as you, consider that they might not be physically able to help you or you might outlive them or you are geographically distant compared to your present circumstances.
Collectively we still don’t seem to be planning for our futures, and it is going to cost quite a bit to pay for our retirement. Did you know that women will utilize $100,000 more in medical care than men, though our retirement income is only 57% of men? Women will also use more long term care than men, probably because our life expectancy continues to be greater. MetLife is estimating that out of pocket health expenses (beyond Medicare coverage) during retirement will be $197-000-$311,000, without including any nursing home expenditures. Nursing home expenses are currently over $75,000 annually in my geographic area. Have you factored this into paying for your retirement?
According to the Metlife Mature Market Institute, 22% of the boomer generation has no goals for their retirement and 10% haven’t yet started saving. Only 15% felt that they were on track with paying for their retirement. In which category would you be classified?
Also consider that you might have to change your retirement program, such as retiring earlier than originally anticipated because of health issues or other unexpected circumstances, such as loss of your job.
Start reviewing your finances today: insurance, retirement funds, etc. and consider seeking expert advice so that you are able to pay for your retirement and all its expenses, expected and unexpected, without having to change your lifestyle in too drastic a manner.