Advances in health care mean that Americans are living longer, and they're learning more about how to manage their health proactively. As a result, the financial landscape is rapidly evolving for seniors in the US. Most of the current crop of 60-somethings are forecasted to live to the age of at least 80; with a longer life comes the need for careful financial planning to ensure a comfortable, secure future. You'll need more than just your social security payments and withdrawals from retirement accounts to cover the rising costs of healthcare and assisted living. Here's how you can age securely and confidently, managing your financial health as carefully as you do your physical health.
Understanding the Financial Challenges of Living Longer
Everyone wants to live longer, but to do so comfortably, you'll need to be prepared for the costs of essentials, healthcare, and other related medical bills that could arise along the way. If they're not managed properly, these costs can quickly deplete your savings. Fortunately, there are ways you can boost your financial stability and enjoy your future:
- Diversify Your Income Streams: Relying only on your social security and retirement accounts is likely insufficient. Consider other income-generating options like part-time work, rental income from owned real estate, or dividend-yielding investments.
- Maximize Your Social Security Benefits: Like so many things in life, timing is everything when it comes to maximizing your lifetime income from Social Security. Delaying benefits until you are at the full retirement age of 67, or even extending that until you reach the age of 70 can substantially increase your monthly payout.
- Plan for Healthcare Costs: Healthcare costs rise with time on a general level and increase with age on a personal level. It's wise to consider things like long-term care insurance to cover the costs of assisted living or nursing home care, if it becomes necessary, which can protect your savings.
- Have Regular Financial Checkups, Too: Just like your health, your financial strategy needs regular reviews to make sure everything is in order. Working with your CPA and other financial planning professionals lets you adjust your plan as your needs evolve along with the economy.
Protecting Your Finances: Practical Tips
How you plan your financial future matters, but how you protect it from theft, fraud, and bad actors is equally important. At a bare minimum, be sure you are:
- Using Strong Passwords: It's tempting to settle on a password you can easily remember and then use it for everything you do online, but this is an incredibly risky practice. Instead, it's recommended to create complex, unique passwords you regularly update to protect your online accounts.
- Enabling Two-Factor Authentication: An extra layer of protection is never a bad thing. With two-factor authentication, you can go the extra mile to prevent unauthorized access to your accounts.
- Staying Informed About Scams: Make it a point to keep yourself up to date about common online scams and phishing tactics. Also, always be sure to verify the authenticity of any official-appearing communication before sharing your personal information.
Playing the Long Game
Securing your financial health as you age requires a proactive, strategic approach tailored to your unique needs and individual circumstances. Diversifying your income streams, maximizing your Social Security benefits, and planning for high healthcare costs are all vital, but equally important are the financial professionals you choose to consult.
At Myrick CPA, we're committed to providing the tools and expertise you need to navigate these challenges with ease. Contact us to schedule a consultation and learn more about how we can help you reach financial security and peace of mind in your golden years.
