What to Expect From Your Retirement. It May Not Be What You Planned: Part 1

Retirement takes a lot of planning. Have you planned your retirement out thoroughly?
All too often retirement will creep up on us. We may end up, because of circumstances beyond our control, retiring before we are quite ready. This happens much more often than you might think.

With this in mind, you need to make decisions and preparations well in advance. You would probably be better off if you could plan on an early retirement. It would be a good idea if you are finding that you are a little lax on saving for retirement that you should think about accelerating your savings program. I believe that you should have most of the money you want to use in retirement well before you turn 60. I have also read that planning on a part time job for a time can help with expenses if you were not quite ready for retirement.

One thing that will deter someone from being able to retire early is healthcare. If you are finding yourself in the position now of retiring early this is still a major issue, especially if you have pre existing health conditions. The new Healthcare law does nothing to help people who are thinking about retiring now because insurance companies won’t have to begin covering people with pre existing conditions until 2014.

In fact, according to the Society of Actuaries, healthcare worries are among the top three things that people worry about when it comes to retirement. People also worry about running out of money, and inflation.

One of the major reasons a person might run out of money would be the cost of long term care. If you are able to cover this in the amount of retirement savings, that would be wonderful. If that’s not possible, there is the choice of long term insurance. Under certain circumstances, Medicare and supplemental insurance covers things like temporary home health care, and hospice services. If you have ever had any experience with these types of services, you know that the services are not for full time help. If you needed temporary full time help, it would need to be provided in a nursing home or through full time home health services. This is very expensive and a stay of a couple of months would probably cost you more than $10,000, and keeps getting more and more expensive as time goes on. This kind of money is difficult to recoup if you are retired.

Full time in home care is also very expensive. This type of care is probably not as expensive as a nursing home, but good competent help does not come cheap. The problem is finding reliable help that you can afford. There are community groups that can suggest agencies and companies that can help with finding help in your home.

Hopefully retirement will be full of travel and visits with the grandkids, but we also have to plan for other things that might happen. With all the things you have to think about for retirement, it’s enough to make your head swim.

Approach your retirement decisions in a logical way. I’m a list maker and find it helpful to list everything that I might need and then research solutions for the things on my list. Being retired is almost like a career in itself. Once you have the plan all set and have covered what you think is important, just follow the plan and enjoy.

Sources:

http://www.foxbusiness.com/personal-finance/2010/06/01/worried-retirement/#content

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Lorena Williams
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Posted on Jul 19, 2010