Planning for a “solo retirement” requires careful consideration of your financial situation and potential risks.
Working with a financial planner can help you create a retirement plan that considers these factors and enables you to achieve financial security during your retirement years as a solo ager, says Go Banking Rates’ recent article entitled, “Why Every Woman Needs To Plan for a ‘Second Retirement.’” Let’s discuss the steps:
Review your retirement plan: If you have a plan in place, make sure it considers your current financial situation and goals. These may differ from the plan you had together as a couple. If you don’t have a plan, consider creating one with a financial planner.
Reassess your expenses: With a change in circumstances, such as the death of a spouse, your expenses may change. Look at your budget to reflect your current situation and adjust as needed.
Consider your income sources: Review your sources of income, such as Social Security, pensions, annuities, and retirement accounts. See if you need to adjust your budget or explore additional sources of income, like perhaps some part-time work.
Review your insurance coverage: This includes Medicare, Medigap, supplemental insurance and long-term care insurance (LTCI). Determine if your coverage meets your needs and if changes are necessary. Continue to pay your LTCI premiums if you are an LTCI policyholder.
Plan for long-term care: Long-term care can be a major expense during retirement. As a result, it’s essential to plan for it. Consider your options, such as in-home care, assisted living and nursing home care, and determine how you’ll pay for them.
Stay involved and connected: Maintaining social connections and staying active can help you stay mentally and physically healthy during retirement. Think about joining a community group, volunteering, or pursuing hobbies and interests.
Have a Plan B: Have a backup plan in case of unexpected events, like a health crisis, stock market downturn, or family crisis. That plan may include having an emergency fund or exploring insurance options.
Want to know more about how you can plan even better for solo retirement? Call our office today.