While it’s important to consider healthcare costs well in advance before retiring, Mindee Kissinger, investment advisor representative at OneDigital, said those already in retirement may partner with a financial planner to ask questions and receive careful consideration and education about healthcare topics. This results in the challenge of retirees either self-funding these costs or finding supplemental insurance programs that may fit their needs.
Even when eligible for Medicare, retired individuals may find not all health issues or prescription costs are completely covered by insurance. Those who make this choice are not yet eligible for Medicare and are faced with the challenge of paying for health insurance premiums. Often, many people will retire before age 65. Take Our Poll: Are You Concerned That Social Security Benefits Will Be Reduced During Your Lifetime? Long-Term Healthcare Costs
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“Answering these questions can help you have a sense of purpose and helps you with knowing how to prioritize your budget and not overspend in the first few years of retirement,” said Heineman. Are their charitable organizations that you can share your gifts and skills with?.In order to make the transition less challenging, Heineman recommends considering your reason for retiring and your purpose in retirement. While it often sounds nice to stop working, Heineman said many people experience a sense of loss and grief when they retire.
Living on a fixed income is made all the more difficult for retirees mourning the loss of their careers, pay and achievements over the last 40 years. Kurt Heineman, financial planner at Vision Casting Financial Planning, said while many financial planners recommend living on 80% of your previous salary in retirement, it can still be a challenge for retirees to get used to a reduction in expenses. This fear is often coupled with the challenge of living on a fixed income, a transition that is often a far cry from the salary raises and bonuses they were previously accustomed to throughout their careers. Retirees who have spent a significant amount of their lives working, and enjoying the work they do, might be afraid to lose the identity that took them a lifetime to create. While some of these challenges might be familiar, like living in an inflationary period, others are completely new. Let’s look at some of the most common financial challenges and how retirees can prepare for the expected and unexpected alike. More: 9 Bills You Should Never Put on Autopay See: 10 Surprisingly Affordable Places to Own Waterfront Property Living in retirement, however, often looks quite different on a day-to-day basis, as retirees are not immune to facing financial challenges. Many people dream about retirement, that next chapter of life where you can explore your dreams and enjoy a comfortable lifestyle.