Photo by Cottonbro Studio / Pexels
From our partner mentalhealthforseniors.com
For generations, Social Security and Medicare have been the primary sources of financial support for seniors and those in need of healthcare. But as the economy and demographics evolve and the government grapples with budget deficits, these programs will likely be under considerable strain. The best way to address this challenge is to take proactive steps to build a retirement and healthcare safety net that doesn’t rely solely on Social Security or Medicare. Courtesy of The Autonomy Group, here are some resources and suggestions to help you build a more stable financial future.
Purchase Insurance
Disability insurance can help replace lost income if you become disabled and unable to work, which is crucial for those who rely on their job to support themselves and their families. On the other hand, long-term care insurance offers support for extended care services due to old age or illness, which can be financially burdensome without proper planning or insurance. Purchasing affordable disability and long-term care insurance early can alleviate financial stress and help plan ahead for unexpected costs.
Invest Prudently
One of the surest ways to build your retirement nest egg is to invest wisely in stocks, bonds, and other financial instruments. This can serve as a long-term source of income and generate significant returns over time. It is important to diversify your investment portfolio and frequently review and adjust your portfolio risk as you age. Investing in tax-advantaged accounts like 401K or an individual retirement account (IRA) can also provide tax benefits and additional savings for your future.
Have a Health Savings Account
A Health Savings Account (HSA) is an excellent way to set aside funds for healthcare expenses that are not covered by insurance. These accounts are tax-free and come with an added bonus of carrying over unused funds from year to year, allowing you to save money in the long run. Starting an HSA early on can help you build a significant funding source for your future healthcare expenses.
Consult a Financial Advisor
Working with an experienced and trustworthy financial advisor can make all the difference in building your long-term financial plan. These professionals can offer expert advice on developing a personalized investment plan, tax management, and risk management strategies tailored to your needs. They can help you navigate the complexities of financial markets and ensure that your investment plan aligns with your goals and financial profile.
Build Your Emergency Fund
Unexpected emergencies, such as a job loss, unexpected home repairs, or medical issues, can quickly dent your savings. Building an emergency fund that can provide temporary relief in these situations can be life-saving. This fund should contain enough money to cover at least three to six months of your expenses.
Be Ready for Job Opportunities
It’s never too late to acquire the necessary knowledge and skills to help you improve your job prospects in the digital economy and increase their earning potential. Obtaining an IT certification through an online university course can provide a cost-effective way to gain new skills and increase marketability. This could be particularly advantageous for those approaching retirement, as it offers an additional source of income and increases contributions to retirement funds.
Delay Receiving Social Security
Last but not least, delaying your receipt of Social Security can increase your lifetime benefits. Social Security benefits grow 8% annually between age 62 and 70. Waiting until age 70 to claim your benefits can provide you with a substantial increase in lifetime benefits and provide you with greater flexibility and control over your retirement income.
It is important to recognize that Social Security and Medicare may not be enough to support you throughout retirement. Building a stable retirement and healthcare safety net may require additional planning and foresight. This can include working with a financial advisor to create a personalized financial plan, maintaining an emergency fund, and investing in education, such as obtaining IT certifications, to increase job opportunities and earning potential. With these steps, you can ensure a more secure and fulfilling financial future.
The Autonomy Group is here to help you maintain the autonomy you deserve.
Call 803-262-0442.
Teresa Greenhill,
mentalhealthforseniors.com
