According to a recently-released study, nearly half of all Americans reach the end of their lives “with virtually no financial assets.” In fact, it was found that 46 percent of U.S. senior citizens die with less that $10,000 in total financial assets. The study also determined that the seniors who had more assets tend to outlive those who had less.
Make Your Money Last While Aging
The lack of financial cushion makes sudden burdens like medical treatments not covered by Medicare and Medicaid even harder to bear. So how can we better prepare ourselves financially for our twilight years?
- Consider how much money you’ll need to survive. What if you live into your 90s and you retire in your 60s, are you prepared to support yourself and your spouse for nearly 30 years? Keep in mind that the cost of what we buy increases every year by 4 percent, which means we’ll see our costs double every 18 years.
- Consider delaying Social Security. Since we are living longer, it may make more sense to draw Social Security later in life – perhaps age 66 or even age 70. The annual benefit grows each year (increasing as much as 8 percent per year, depending on age) and once you’ve reached full retirement age, there is no limit to the amount of income that you are able to earn.
- Hire a financial advisor. If you don’t know where to start, it’s best to turn to the experts. Hire a professional early enough to start making a retirement strategy. Having a financial plan in place will make you less stressed out about the future and will allow you to set aside the right amount of money each month to reach your goal.