Your Golden Years can be the best times of your life but also challenging at the same time. To enjoy this time in your life, you should plan for yourself and set your future up for success. Being your own backer can help keep you steadfast and studious in this new chapter of your life. Being your backer means supporting yourself in all aspects of life, especially financially. Here is how you can do that!
Planning for your retirement is essential if you want to be able to retire. Before you can retire, you should plan to have a substantial amount of money set aside for your day-to-day living, such as food and clothing, home costs, utilities, healthcare costs, travel, entertainment, and more.
A 2019 study conducted by Northwestern Mutual found that 22% of adults in the U.S. have less than $5,000 saved for retirement, and 15% have no retirement savings at all. Numbers like this are quite concerning since it’s recommended to have 70 to 90% of your current income saved to maintain your current living style.
A way to plan for retirement is to sign up for a retirement savings plan, such as a 401(k), typically offered by an employer. If you sign up for this type of account, a certain amount of money will get deducted from your paycheck and will go right into that account. You will not have to pay any taxes on the amount of money you contribute until you withdraw the money when you retire.
Did you know the average healthcare costs for those who are 65 years old are over $11,000 per year in the United States? A common myth is that Medicare is free, and Medicare will cover all your out-of-pocket healthcare costs at 100%; this is far from true.
Medicare is health insurance for those 65 years and older and others who qualify earlier due to disability. Although Medicare Part A (inpatient care) is $0/monthly for those who worked ten years in the U.S. and paid payroll taxes. If you did not work ten years or pay payroll taxes, you would pay a monthly premium for Part A. Medicare Part B (outpatient care) has a monthly premium regardless of your work history.
Medicare Parts A and B do not cover all your services at 100% either. For example, Part B only covers 80% of your Medicare-approved services after you pay the deductible. Therefore, you would pay 20% of your healthcare services with no maximum out of pocket.
A way to be a steadfast backer is to plan for your healthcare costs and know this information ahead of time. It would be best to consider looking into a Medigap or Medicare Advantage plan for cost-sharing help for your healthcare services. These types of plans are very different from one another but can help you save money for the year.
An essential part of retirement is practicing self-care. Self-care is the method of taking care of yourself and promoting a healthier way of life. Self-care can start by changing your diet to ensure you are getting enough nutrients to maintain a healthy immune system, which can help you stay away from the doctor.
You can also get active and exercise to help practice self-care. Maintaining a fitness lifestyle can help you grow stronger mentally and physically while also promoting a healthy cardiovascular system by lowering your chance of heart disease.
Lastly, relaxation and lowering your stress levels are crucial to self-care. Being stressed out consistently can begin to affect your mental health and cause cardiovascular problems. In retirement, you now have the opportunity to relax and focus on yourself. If you enjoy reading, you can be studious by finding a good reading spot outside and getting lost in your book. If cinema interests you, see a new feel-good show or a movie to watch every day!
Taking time to take care of yourself in retirement is essential to being your own backer.
A way to be steadfast and studious is to stay up to date with everything going on in this day in time. Prepare for your retirement, understand your healthcare needs, and take care of yourself! When you begin to focus on yourself, you will be the backer you never knew you needed.
Written by: Danielle Kunkle Roberts
Danielle Kunkle Roberts is a founding partner at Boomer Benefits and a Medicare Supplement Accredited Advisor. She and her team help thousands of baby boomers learn the ropes regarding Medicare every year.