Planning Your Finances To Support The Transition To Retirement Living
Transitioning to retirement living and considering the move into a senior community can easily feel overwhelming – maybe even frightening. But there are structures in place to assist you in making retirement living affordable and financially comfortable.
If you’re planning for retirement living, now is the best time to develop a clear road map. Below are a few tips to help you on your financial journey toward retirement.
Make a Retirement Plan
Without a plan, it’s hard to determine what exactly you’ll need when the time comes to transition into retirement living. It’s recommended that you start planning now by estimating expenses while saving and identifying other sources of potential retirement income, so the transition process is less intimidating. Start by setting retirement goals such as:
- Age of retirement. Identifying this will give you a personal deadline to ensure your finances are in place.
- Lifestyle desires. Everyone’s retirement is different. Decide whether you are seeking an active or quiet environment and explore retirement communities and prices in line with your preferences.
- Retirement savings. Once you know when you want to retire, and where, you can start preparing your retirement savings plans and costs.
- Type of Community. Are you interested in a free-standing community that is just Independent Living? Or are you interested in a continuing care retirement community (CCRC) that offers multiple levels of care? Thinking more about the type of retirement you are looking for and if you would be willing to move again later down the road if your health needs changed, is something worth deciding when planning your finances.
- For profit or not-for-profit. Deciding if you gravitate towards a for profit or a not-for-profit community is also an area to explore. In for profit versus not-for-profit communities, the profits are used different ways. At Wesley Glen, a not-for-profit community, some of our profits are allocated to our Charitable Care Fund which covers our residents’ cost of living in our community should they outlive their finances through no fault of their own.
- Retirement needs. It’s recommended to think about your current needs and how your needs may change down the road. Do you need assistance with medication? Is having a pool in close proximity for regular exercise something that is crucial to you? Take your needs into consideration when starting to plan.
When Can You Retire?
Whether you’re just a few years away or planning well in advance, it helps to know what your retirement age looks like. Understanding this will help you set realistic and reachable financial goals, so you can lay the groundwork for a savings plan and a place to live.
Senior Lifestyle Priorities
While some seniors may prefer to live a quiet, independent, private lifestyle, others may prefer a more bustling community. Now that you have an ideal retirement age, it’s time to identify what your retirement lifestyle looks like. Start out by evaluating communities that best fit your preferred environment and try and create a savings plan to help you get there. At Wesley Glen, we provide patio homes and apartments with varying prices that are filled with like-minded individuals who balance privacy with a sense of community.
Figuring Out What You Need
Everyone’s retirement needs are different. Based on your situation, ideal retirement age, family history and current living parameters, it’s worth taking the time to identify elements that you’ll need in order to live a comfortable post-retirement life. For instance, specific medications and needed services or amenities must be taken into consideration. Analyzing such components as desired amenities, necessary services and medications will help you and/or your family identify the best communities that will suit your needs.
Saving Options to Reach Your Retirement Goals
Now you can more effectively develop a list of numbers to meet your retirement goals. It’s never too early (or late) to start saving using a 401(k), an IRA, Social Security, long-term care insurance or a pension (or some combination thereof). With earning goals in mind, you can use an online retirement savings calculator to determine how much you should be saving per year matched up with how much you currently have saved, how much you are currently making and how long you have before retirement.
Variety of Choices and Resources
Despite the standard fears about retirement, a comfortable transition from working life is an achievable goal with research, planning and assistance. We have online retirement resources and long-term insurance options to help you prepare for a thriving senior life. If you’d like to discuss your retirement plans and the options available at Wesley Glen, fill out the form below and our team will be in touch with you.