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Have You Saved for Major Retirement Expenses?

Cuerpo

Many people approach retirement thinking their cost of living will decrease once they stop working. This is only partially true, and misconceptions about future expenses can cause your finances to fall short.

Are you saving for these expenses?

retirement expenses
Health care costs can be high

Medicare helps to pay for some medical expenses, but coverage is limited. Out-of-pocket expenses can be substantial, requiring extra insurance, significant savings, or both. Either way, you need to factor in medial costs that could rise faster than inflation.

Home sweet home or money pit?

Big-ticket house-related expenses can place an unexpected drag on your savings. Roofs need replacement, appliances wear out, and repairs and renovations can be quite costly. It’s a good idea to budget a percentage of your home’s value each year for upkeep.

Long-term care (LTC) costs are often underestimated

Some people will escape high long-term care costs, while others will accrue large medical expenses to pay for ongoing care. LTC insurance policies can be expensive and can sometimes include an increase in premiums. Some policies combine life and LTC insurance, allowing you to draw down your death benefit to cover the costs of daily care.1

Retirement should not be boring

Travel and entertainment can be hard-earned rewards for a lifetime of work. Retirees often underestimate these costs – you now have seven days a week for fun rather than just the weekends. Money spent on hobbies, dining out, seeing the world, or entertaining others can quickly add up.

You deserve a comfortable retirement

Planning, saving, and investing are key components to the kind of retirement you want. The sooner you start preparing, the better your ability to handle the costs of retirement without sacrificing your lifestyle.

Are you ready for retirement?

Our wealth advisors are ready to help. SCE FCU Wealth Management