Gaging your retirement can be an unpleasant task. It’s a process that involves crunching numbers and setting all of your affairs in order 30-years ahead of time.
But even with all the i’s dotted and t’s crossed on your plan for retirement, there are still obstacles that can impede your hard work and preparation.
That’s why I’ve listed a couple factors to keep in mind when readying yourself for the transition into this new lifestyle.
One of the most common issues that people fail to take into consideration when planning for retirement is inflation.
Yes, the majority of retirees do their part and adequately prep for the thirty or so work-free years ahead of themselves; however, they forget to take the ever rising cost of the dollar into account.
In reality, most of your daily expenses will be inflating with each passing year into retirement.
It’s an inevitable cycle that individuals are blinded by because they assume everything will continue to be smooth sailing. Either way, it never hurts to prepare for the storm.
Despite your expenses and bill payments being under control NOW it’s not safe to assume that they will be 10-years into the future, considering prices will gradually continue to climb upward.
For this reason, it’s important to overprepare in order to remain afloat instead of budgeting everything on a break-even basis and sinking into debt.
Just remember that it’s likely you’ll need more than you think.
Apart from inflation, health insurance is another factor that’s worth looking over when nearing retirement.
Health insurance is EXPENSIVE if you choose to retire early.
These costs often amount to $1,500 or more per month and tend to be accompanied by massive deductibles.
Even at the bare minimum, that’s still close to twenty-grand in annual healthcare expenses!
With that said, it’s probably not surprising to learn that health insurance is one of the main reasons why employees choose to prolong their retirement until a further date.
Holding out until age 65 not only kicks-off your eligibility for Medicare, but it has the potential to save you THOUSANDS of dollars in the process.
And what’s the rush?
You’ve made it this far already. So, what’s another couple years or so tacked onto the retirement date?
It’s more important to retire with the confidence of knowing that you’re prepared for the years ahead than to rush into it and get dragged down with inflation costs and unnecessary healthcare payments.
If it makes you feel better, 3 in five 5 Americans are likely to work an average of 2-years longer than they’d like in order to meet their personal retirement goals.
Perhaps you’ve been steadily planning for this long awaiting retirement date to arrive and you feel that you’re finally ready for it to begin.
Either way, it’s always a good idea to double check everything and ensure that you’re prepared for whatever obstacles you may encounter.
It’s always better to be safe than sorry and in the end, you’ll have the peace of mind in knowing that you’ve equipped yourself for the journey ahead.