Are you concerned with your finances heading into the next phase of Senior Living? It’s normal to be concerned, but with the right steps, you can reach older age while maintaining financial stability. Here are our tips for financial planning for Senior Living.
How Do You Prepare Financially For Old Age?
It’s best to start financially planning for retirement when you’re still young. While retirement may seem far away, it’s closer than you may think. Being prepared is vital. Not all is lost if you’re already older or quickly approaching retirement. There are strategies and finance options you can take advantage of, like social security, a 401(k), and other tax benefits.
How Many Seniors Are Financially Stable?
Compared to the millennials in the generation before them, today’s seniors are pretty financially stable. A study by the Stanford Center on Longevity found that in 2014, seniors had the highest financial security of any generation, with 69% of all 65- to 74-year-olds classified as financially secure. However, that number does deteriorate for people over 80 as their medical and long-term care costs increase and social security payments fail to keep up with inflation.
Tips For Financial Planning For Senior Living
Seniors can plan to finance their futures by starting soon and planning ahead. Here are our top tips for financial planning for senior living.
- Start Early. We’ve already said it, but we’ll say it again. The best way to plan for your retirement years is to start early. By saving as soon as possible, you’ll set yourself up for a higher probability of future financial stability.
- Know How Much You Need. If you don’t know how much income you’ll need in retirement, there’s no way you can plan for SeniorLiving. Many experts estimate that you’ll need 70% to 90% of your pre-retirement income to maintain your current standard of living. So keep this number in mind as you plan.
- Employer Retirement Match. Many employers offer a 401(k) contribution match as part of their benefits for employees. For example, if you donate 5% of every paycheck to your 401(k), many employers will match that up to a certain percentage. Make sure you know when the money from your employer will be vested. If you leave early, you may lose their contributions.
- Learn the Basics of Investing. Investing your money in diverse funding streams is an option for retirement savings. Even if you don’t plan on making any investments yourself, you should learn how your savings or pension plan is invested and your options for investment.
Financing Your Senior Living
All About You Placement and Senior Resources knows that finances are often a primary concern for people entering their retirement years along with their families, especially when choosing a Senior Living community.
With over 50 years of combined experience, our team can assist you in sorting through your options and finding the best solution at the right budget. We have great partners with Senior Living communities and Care Homes throughout Maricopa and Pinal counties to meet different financial needs. Get started by giving us a call today at 480-498-2277.