Financial education is constantly evolving. As investments, financial priorities, and the economy change, so do financial strategies and plans. To stay on top of your retirement and ensure that you are on your way toward your financial goals, it’s vital to keep up with your financial education and awareness so that you will be able to make appropriate decisions regarding your financial future.
Whether you are preparing for your retirement, just starting your retirement journey, or are already a seasoned retiree, below are a few considerations to keep in mind as you continue on this path.
Be Mindful of Your Budget
Budgeting carefully and appropriately will help reduce your risk of a financial setback and better prepare for unexpected expenses. Your earning power is usually reduced when you retire, and your budget will be more limited to what you have been able to put away, along with a monthly Social Security payment. By limiting expenses and creating a budget that allows for savings and emergency expenses, you will hopefully be able to stretch your nest egg throughout your retirement.1
Fraud Proof Your Retirement
Older adults are often the target of scammers and fraud. A trusting nature and the desire to help those in need that many in this age group have makes them especially vulnerable to those who want to prey on the kind-hearted. You should consider putting fraud safeguards in place to help reduce your risk of becoming a victim. These can include putting your phone numbers on “do not call” lists, using fraud protection features on debit and credit cards, having your credit monitored, and setting up alerts for family members to be notified of large or unusual withdrawals from your accounts.1
Research All Social Security Benefit Options
Many overlooked aspects of Social Security leave many seniors missing out on benefits they may be entitled to but don’t know to apply for. More commonly overlooked Social Security benefits include:
● Spousal benefits
● Survivor benefits
● Divorced spouse benefits
● Disability insurance 2
Plan for Medical Expenses and Insurance Costs
As you age, you are more likely to require costly medical testing and treatment to maintain your health. Unfortunately, medical costs continue to rise each year. One of the first steps to take to manage medical costs is to find appropriate Medicare coverage to ensure that you can minimize monthly costs and the cost of your medical needs. You will also want to plan for future high medical costs and expenses, including long-term care, even if you have a good healthcare policy in place. Including medical expenses in your monthly budget will help with this as well as purchasing insurance policies, such as long-term care, to provide additional cost coverage. 2
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Please keep in mind that insurance companies alone determine insurability, and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices. Guarantees are based on the claims paying ability of the issuing company.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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Footnotes:
111 Money Tips for Older Adults, US News and World Report, https://money.usnews.com/money/personal-finance/slideshows/11-money-tips-for-older-adults 2 A Guide to Finance for Seniors, Senior Living, https://www.seniorliving.org/finance/