THOUGHT OF THE WEEK
IS THERE A BEST TIME FOR ME TO RETIRE? (PART)
In deciding when to retire, there is the need to have an idea of what your expenses and income might be. This helps you to determine how close you are to retirement. As someone planning to retire, there is the need to estimate how much money you are likely to spend each month and each year.
It is estimated that you will ordinarily spend 70%-80% of your current income when you retire. This is because you are likely to be spending less on some things that you were used to. They include: Everyday expenses like clothing for work, transportation to work, income taxes etc. This notwithstanding, there are additional expenses that arise which include higher cost of health care and other lifestyle purchases. These additional expenses means there will be the need to increase the target to something more than you currently earn.
There is going to be some income coming from Social security which might be inadequate to finance all your retirement needs and therefore calls for a personal effort in making investments towards your retirement. Health care during retirement
A lot of people pay less attention to their health care needs during retirement and by ignoring this important aspect of retirement, do not make preparations for it. Health care is a very important thing to plan for during retirement. Most companies put their staffs on health insurance during their working days which subsidizes the total cost of health care. During retirement, this healthcare subsidy from your employer will be non-existent so your healthcare costs will go
up. There is therefore a need to receive a personalized healthcare estimate from a healthcare service provider for your retirement years. This will take into consideration your current health status and what to expect during retirement…(to be continued)