Many workers look forward to retirement and the chance to get a break from the daily gravel.
Case in point: An estimated 26% of seniors who have been retired for 10 years or more, along with 27% of recent retirees, say their lives are worse than they were during their working years, according to the Nationwide Retirement Institute. Here are three reasons why you might end up hating retirement – and what you can do about them.
1. You probably do not have enough income to live comfortably
As a general rule, you can expect about 80% of your pre-retirement income to live comfortably as a senior. Now there's some wiggle room with this formula, which means that if you're willing to downsize your living space or relocate to a less expensive area of the country, you might manage to get on more than 65% or 70% of your forms earnings.
Social security will cover some of your bills as a senior – but it'll be on you to come up with the rest. Therefore, take a look at your savings and see if they're adequate before moving forward with retirement. If your career earns $ 80,000 a year and expect to collect $ 2,000 a month in Social Security, you'll need another $ 3.333 a month to have a total annual retirement income of $ 64,000, which is 80% or $ 80,000. That amounts to about $ 40,000 a year from savings.
Now as a general rule, you can expect to withdraw about 4% of your nest's value each year and not have to worry about running out of money in retirement. Therefore, if you think you'll need $ 40,000 a year from savings, you'll want to retire with about $ 1 million. Allow yourself to leave the workforce with considerably less, and you'll risk struggling financially later in life.
2. You are plagued by medical bills
-year-old woman will spend $ 214,565. And if you enter retirement with known health issues or problems develop once you stop working, it can make an expensive – and stressful – existence
Thankfully, there are steps you can take to lower your healthcare spending in retirement . First, be smart about Medicare. Original Medicare won't cover many common expenses, like dental and vision care, so it might pay to sign up for a Medicare Advantage plan instead. Shopping around for the right drug plan will also help keep your costs down, so plan to evaluate your prescription needs on a yearly basis and choose plans that offer the best coverage. Keep in mind that Medicare Advantage will serve as your drug plan as well if you sign up for it. Of course, it's always a good idea to get ahead of health issues before they escalate to keep their associated costs down. And getting regular checkups is a good way to go about that. In fact, under Medicare, you're entitled to a free wellness visit every year, so plan to use it – it'll save you money and stress.
But most importantly, go into retirement with adequate savings. This way, if health issues do than up cost more than expected, you'll have to lose.
3. You're bored
There's a reason to increase the likelihood of suffering from clinical depression by 40%: Having too much free time on your hands can easily lead to feelings of boredom and worthlessness. And if you don't have enough money to entertain yourself adequately, you could wind up miserable in a matter of months.
That's why it's crucial to think about how to spend your days in retirement ] ing trigger trigger, savings For example, you might intend to take classes at a community college or work on improving your golf swing, but if you can afford the cost of tuition or a country club membership, you'll need a less expensive backup plan (either that , or more savings).
If you know you are coming into retirement with limited money to spend on leisure, be sure to come up with a list of options for free or low-cost entertainment before leaving your career behind. Outdoor activities like hiking and backpacking are generally free, and often, you can visit museums as a senior at a fraction of their normal entry fee. Either way, make sure you really have enough with your time before moving forward with retirement, because you might find that it makes more sense to work an extra year or two, save up some additional money, and then retire at a point where you can do the things you want to do.
You deserve to enjoy retirement to the fullest. Save appropriately, plan for medical expenses, and figure out how to spend your days, and with any luck, you just that. [Fool] .insertScript ('facebook-jssdk', '//connect.facebook .net / en_US / sdk.js # xfbml = 1 & version = v2.3 ', true);
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