Senior Retirement Planning
Many Americans dream about their retirement. They look forward to spending more time with family, taking up new hobbies like golf or gardening, and having the freedom to travel wherever and whenever they want. However, in order to have enough money to live this dream, baby boomers need to be smart about their finances. There are a number of reasons why seniors should start planning for their retirement earlier rather than later.
Two of the biggest reasons are the compound interest and tax incentives. The sooner you start saving, the more interest you will earn on your investment. Even if you only start by putting a little away, you will reap the benefits later. The tax incentives are another added bonus. With a traditional 401(k), you don’t have to pay taxes on the money you contribute until you retire. If you choose a Roth IRA, you can pay taxes upfront and then take advantage of tax free withdrawals when you retire.
But perhaps the biggest reason you should start saving for your retirement right now is that senior health-care costs in later life can be quite significant. Unfortunately, Medicare and Medicaid will only cover so much, and in fact, any senior home health agencies, such as Home Care Assistance, are private pay only. Thus, whether you put money away in a savings account or purchase long-term care insurance, make sure that you factor health-care costs into your senior retirement plan. We promise, you won’t regret it!
Interested in learning more about your senior health care options as you age? Unsure of whether long-term senior care insurance is right for you? Give us a call today and learn more about San Diego senior care.