Hitting the age of retirement is something most people look forward to. After spending an entire adult life working to afford a place to live, food to eat, a car to drive, and maybe a yearly vacation. The thought of not having to be beholden to “the man” day in and day out is appealing. However, many people who enter retirement have found it not to be as free and easy as was expected. This new stage in life can bring with it some unexpected issues that can cause undue stress. Following are three retirement issues you may be facing today. Even though your retirement years are not near if you have debt in retirement.
Health costs keep going up, and it looks like there is no end to that trend. Even with the advent of the Affordable Care Act, people are still responsible for paying their health insurance premiums, which seem to go up annually. Further, once you retire from your job, chances are that your former employer will no longer be contributing to your health insurance costs.
So, regardless of your income level, it is likely that your health insurance costs will go up when you retire. Add to that the fact that people are living longer than ever, which means you will need to pay for insurance or Medicare for a longer period of time than your parents and grandparents did. All of this adds up to spending an increased amount of money. If you do not plan for these expenses, you can end up having to turn to your retirement fund to pay for your health care needs, which will make the money not last as long.
As stated before, life expectancy in the United States has increased dramatically over the past few decades, and this trend is likely to continue. Common sense dictates that the longer you live, the more money you will need. Unfortunately, retirement funds are not increasing. Therefore, there is a good possibility that today’s workers are going to outlive their retirement funds and will not have resources to live on in their later years.
The impact of your student loans can certainly be felt long into the future. Many students graduate with tens of thousands of dollars worth of debt that need to be repaid. The payment of this debt means those who are new to the workforce must delay saving for retirement. So, by the end of their careers, these people are out both the principle that could have been paid plus any potential interest that could have accrued. Missing this money can be quite damaging when it comes time to retire.
The best way to have a stress-free retirement is to plan wisely. Knowing what potential pitfalls may arise and having a way to combat them is paramount. If you need assistance planning for a worry-free retirement, contact one of the professionals at Goodbye Loans today.