Financial Planning Tips for Senior Retirement
At any age, planning for your retirement is critical. The decisions you make now will impact your decisions in the future. For seniors, the goal is to have the confidence that you have the funds to enjoy the retirement lifestyle you’ve always dreamed of having. Meeting with a financial advisor, doing some research on your own and creating a realistic retirement plan are all important steps in securing your financial future.
Your quality of life when you retire will depend on you making the right decisions with your money now. And, below are some valuable financial planning tips to keep you moving in the right direction.
10 Tips for Planning for Retirement
At some point, everyone hits retirement. Whether it’s by choice or by necessity it is in your best interest to plan for it. And as you near retirement age, you may start thinking your life is going to slow down. But, if you don’t plan ahead now, you could be bogged down by managing your finances.
Below are ten tips to help you stay on the right track and simplify your retirement.
- Designate primary accounts – If you currently have multiple bank accounts and investment accounts, you can simplify your financial life and pay closer attention to spending by moving all your assets to one location.
- Pay off debts – This sounds simple enough, but it can be a long-term process. Start by targeting consumer debts, such as car loans or credit card bills, and start paying down on these amounts as much as possible.
- Meet a financial planner – It’s common for seniors to put off meeting with a financial planner. Don’t do this. They can help you develop a personalized plan of action to help you hit your goals sooner than you think.
- Cancel credit cards – If you have accumulated several retail or rewards credit cards, now is the time to consolidate them into only using one main card. Try to use the one you’ve owned the longest and have built the best standing.
- Downsize – One of the very best ways to save for your retirement as an older adult is to downsize. The home you once shared with your children is probably getting too big and it might make sense to consider moving into a condo or senior living community. Renting also has its benefits by eliminating repair costs, yard maintenance or plumbing issues.
- Avoid recurring expenses – Overtime things like magazine subscriptions, electronic bank deductions, and other unused services can add up. Take inventory of your recurring expenses and cut out what you don’t need. Put the additional savings into your retirement.
- Don’t rely on only social security – It’s a common misconception that as a retiree you can live off your social security. However, if you start collecting social security before the age of 66 or 67, you could receive 25% fewer benefits from it.
- Look into annuities– Annuities are financial products provided to seniors at fixed incomes. It allows you to pay a lump sum in return for a fixed income payment over the period of the annuity. This can help you simplify your retirement income streams.
- Plan for inflation – Even though retirement might only be a few years away, you should still plan for inflation. Rising prices can quickly eat into your retirement funds.
- Talk with Family – Talk openly and honestly with your spouse and loved ones about your financial goals. Not only will this keep you focused, but it will change their expectations for the way you spend your money on things like eating out, birthdays, and holidays.
Explore Your Options at St. Joseph of the Pines
If you are considering downsizing to help you save money for your retirement years, consider St. Joseph of the Pines. Our life plan community offers independent living that caters to your specific needs and goals. Spend more time focusing on what’s important and leave the rest to us. Visit Belle Meade and Pine Knoll to see if one of our North Carolina campuses is a good fit for your retirement goals.