What we’re told about retirement and what we experience when we get there are two completely different things.
Think back 10-20 years ago. Do you remember what your retirement looked like for you? Do you remember the dreams and goals you had? Did you reach those goals?
For most people, the answer is no…
It doesn’t matter if you’re well into retirement or approaching it soon, you need to make sure you don’t miss out on the retirement you deserve…
What do you consider your main goal for retirement? It’s probably something to do with the amount of money you’d like to have saved up, right? You’re not wrong to think about retirement that way, but there’s another function of retirement to think about…
I’m talking about your retirement spending.
This is an afterthought for most people who think that spending is going to be what it’s going to be.
Yet, overspending in retirement can significantly jeopardize financial security.
With a fixed income and limited opportunities for generating additional revenue, retirees who spend excessively may quickly deplete their savings.
This can result in insufficient funds to cover essential expenses such as healthcare, housing, and daily living costs.
As health-related expenses tend to increase with age, having a depleted reserve can lead to stressful situations where one must choose between necessary healthcare and other critical expenses.
On top of that, the healthcare costs projections point toward retirees spending more and more in the near future. Some new data regarding this sort of spending shows healthcare costs accounting for approximately 13% of spending for people 65 and older.
This same data, coming from HealthView Services, projects healthcare costs to rise about 5% annually over the next 10 years, which is a drastic increase over the normally presumed rise with inflation of about 2.5% to 3% per year.
So now after falling for a few years, the projected savings target has been rising since 2015, according to a study from the Employment Benefit Research Institute.
I’m not saying this to make you feel uneasy or anxious. Actually, it’s quite the opposite – I want you to be able to prepare properly for your retirement in order to live comfortably and happily.
The other reason I’m telling you this now is because you need to start planning for this right now.
Every day you put it off is a day wasted and a day lost. Don’t let that be one of the days you want back when you’re well into retirement.
Taking all of this into consideration today will help make sure you don’t miss that retirement you deserve!
