You may not realize it, but your retirement is actually coming up pretty fast, and you have to get ahead of it and plan for it not, not later. While things have changed drastically since our parents and grandparents retired, if plan ahead and make smart choices with your money, you will be able to provide yourself with a solid foundation to rest on as you get older.

Your situation will be unique to you for many reasons, however right now you need to think about your retirement, what you want to do, how luxurious do you plan for it to be, and prepare for the cost of that to be much higher than you expect.

Coming to Terms with Uncertainty

Anything could happen in the future. From health issues to natural disasters, economic hardships and other unplanned situations, life can and will often throw you a few curve balls from time to time. These obstacles are inevitable, and the best-laid plans are those that help you prepare for the uncertainty.

“Don’t put all of your eggs in one basket” they say, and you should listen, because whatever plan you had for retirement likely has some holes in it that you’ll need to address someday. Look at all of the worst case scenarios and set up a realistic backup plan, just to be safe.. You probably won’t ever face these issues, but you can rest easier knowing that you’re ready if you have to.

Say you have a 401K, but what will you do if you lose your job and need to take money from it early? Can you recover from that What if your insurance isn’t good enough to cover the extra medical expenses you or your spouse might have? While we might not want to face these things, keeping a realistic attitude now will save you a lot of hassle later.

Whatever your situation, it’s always a good idea to have multiple options so that you are not caught off guard and left stranded when the unexpected happens.

How to be Financially Independent

Retirement is now about being financially independent, it not longer involves getting that nice gold watch at 65. Many people are surprised when they find themselves not retired early, not at 65, but still working, even into their 70’s.

The right amount of money can only be figured out by taking a good look at yourself, what you expect your quality of life to be, and then how much that’ll cost each and every year. Years ago most people could rely on having a company pension as a steady source of income, but over the past few decades more and more companies have switched from pension programs to 401 K programs which put more of the financial burden on you and less on the company. These programs are often confusing at times, yet you can make them work to your benefit if you are smart about it.

Between inflation and the consistent growth in home prices you may find yourself struggling to budget with your current income and expenses. Many people fail to account for the fact that, due to the growth in modern medicine, they’re likely going to live much longer than they originally thought. People are living longer and more active lives, so what’ll you do when you find yourself at 105 and still going? How will you budget for an extra 20 years?

You might also want to consider that you’ll be living differently when you retire. Chances are you’ll find yourself in a big, empty home with your kids moved out, and in your older age it may stop being cozy and start being a chore, so perhaps you’ll want to downsize, or maybe even get an RV and do some traveling.

The sooner the better when it comes to planning, investing, and saving for your future. You may need to take a few days to really crunch the numbers and try to get a realistic figure so that you can start figuring out how much you need to save. You’ll likely have to make a couple sacrifices early on in life to give yourself a worry free retirement.

Click here to read the most relevant information about homes for seniors in Bellingham Washington.

What is a 401K?

A 401k is a type of retirement plan where you can take money from your checks automatically and have it placed into a retirement fund, before taxes are calculated. As of 2017 you’re not able to put up to $18,000 into the fund without being taxed on it. Some employers still pay into the fund when you do, however this isn’t always the case.

While these can be confusing, it works out like this. Let’s say you make $60,000 per year and you put in $10,000 per year to your 401 K. This means that this year you’ll only be paying taxes on that remaining $50,000. You’ll have $10,000 safely squared away, and you won’t be losing those last few hundred dollars on taxes.

Each company is different, so be sure to dig deep and see what exactly your employer offers you. By failing to read the fine print many people lose out on opportunities.

What is Social Security?

Social Security was signed into law in 1935 by President Roosevelt, and was meant to ensure that the elderly never lived in poverty. It’s a very simple concept, like with a 401 K, a percent of your check is deducted and when you retire you are able to start collecting benefits. Thing is, it’s not enough to live off of on its own. It’s been through many changes, and should only be viewed as supplementary at most. If you need to then you can collect benefits before you turn 65, however there are some problems with doing that so be sure to do some detailed research first.

What is Medicare?

Medicare is a national insurance policy that’s funded from federal payroll taxes that covers United States citizens age 65 and over as well as younger individuals with qualifying conditions that currently provides coverage for over 55 million people. Likely you’ll need another insurance or decent sized bank account because it only covers about half of expenses.

Just as with Social Security, it’s a great program but is by no means something you should rely on completely. As we get older, health issues often increase and you don’t want to be caught having to pay a hefty chunk of your yearly budget because of an unexpected injury or illness.

Do You need to live in Assisted Living?

Many people wish to retire with their home paid off, however they forget the other costs that can add up to still have a mortgage, costs like maintenance, utilities, insurance, and taxes, just to name a few.

When planning your retirement you might want to look into the option of either selling or even renting your property and moving into something smaller with less overhead and expenses. While having a large house right now when you have kids might be the best option for now, does it fit into your long term plan?

The other issue that you may end up facing is the need to live in some kind of assisted living community. These places can be great for seniors, especially in these modern times with the extra security and fun activities available. This option isn’t for everyone, but you should still look into it.

What do I need to do About my Healthcare?

At some point, your body will break and it’s up to you to make the most of it while you have it. You need to be sure that you’re covered, especially in these uncertain times. While Medicare will cover some of your costs, even a routine visit to the doctor can cost several hundred dollars, and without some kind of additional insurance you will be stuck paying out of your own pocket.

You’ll need to do careful research to find just the right insurance policy for when you retire.

Why Staying fit After Retirement is Important

So if you’ve got your living situation taken care of, and you’re pretty confident that you’ve done what you can to get your money set up right, then the next step is to see if you’ve been letting those extra pounds just slip on. If you just let yourself go then later on in life you’ll find yourself not out seeing the world, but sat in a chair, forced to watch while others have fun without you.

Even something as simple as making it a habit to walk for a mile every day can lower your risk for various ailments such as high blood pressure, heart disease, and type two diabetes.

You’re never too late to start making a change for the better, so be sure that you’re taking care of your health. You’ll find it far more worthwhile to stay ahead of these things, as the cost of caring for a minor inconvenience is far less than attempting to repair a major disaster down the road.

Why Senior Citizens need Wills

It’s hard to think about, but it’s important that you take the time to meet with a lawyer and ensure that your spouse and family will be covered and your last wishes carried out. A legal will is meant to give you peace of mind, and spare your family some of the confusion and problems that will inevitably come when you pass. These are not hard to file nor are they expensive, and they ensure that your assets are managed accordingly. Without a will that state can often take control of your estate, and you won’t want that to happen.

Be Confident in Your Retirement

You no longer need to fear that your senior years will be a struggle or filled with boredom and dread, you can live a life of fun and exploration. The only way to make this happen is to start planning now.

Everyone is unique, both in what they want and what they’ll have the day they retire, so it’s best not to take chances.

Money is a tool, so use it while you have it, either via your investments, employer, or other means. It might mean that you have to make a few compromises and sacrifices now, yet your choices can have a major impact on if you are able to retire at 50 or if you are still in the workforce 75.