Being able to sit back and enjoy life at retirement should be easy. For some, planning for retirement can be a major cause of stress in their lives because they have been misled about how much money to put away for retirement. In Texas, savings plans that will cover long-term care should be in place long before the paychecks stop. It is important to be informed and to make informed choices.
Most people fall far short in saving enough money for retirement by assuming that Social Security will sustain them. At age 70, the average monthly check would be $1,268, and the yearly household income from Social Security would be $15,216, or slightly above the poverty level. Studies have shown that age-related illness or infirmity will force people out of the workforce well before that age.
Having an income that slightly exceeds the poverty level will make various types of assistance programs just out of reach. A household may have enough income to get by provided there are no complications such as health issues or unexpected costs. At age 65, seniors qualify for Medicare but with significant limitations. Sadly the program pays nothing for long-term care, dental, vision or hearing.
Employee Benefit Research Institute shows that almost half of retirees spend more money once they retire. The over-spending is not the result of relaxing trips and cruises but from the high cost of healthcare. Failure to take healthcare expenses into account before retirement is a serious financial mistake. Texas seniors may want to plan now by contacting a knowledgeable, experienced long-term care attorney who will work with them to make the best financial choices to support their retirement.
Source: fool.com, “3 Retirement Myths That Could Cost You Big Time — The Motley Fool“, Christy Bieber, Sept. 22, 2017