With more Americans now living longer, many worry about outliving their savings. Having a budget will help avoid the risk of spending too much too soon. Knowing how much you have and what your expenses are, puts you in a better position to prevent this from happening. You will also be able to plan better for unexpected costs while keeping aside a little something to enjoy your favorite hobbies and dream vacations.
The experienced and dedicated team at our independent living communities share some expert tips on how to create a budget for your golden years.
Tips on Monthly Budget Planning for Retirement
- List out your financial resources: Begin by listing out all sources of income in your retirement such as social security, work pension, retirement accounts, annuities, certificates of deposit (CDs), savings accounts, investments (mutual funds, bonds and stocks), equity in your home, and any income from part-time work.
- Calculate your expenses: Estimate how much money you would need to maintain your current lifestyle. Include mortgage/rent, property taxes, utilities, groceries and household supplies, general home maintenance (if applicable), entertainment, personal and healthcare expenses, transportation (car payments/insurance/fuel), travel, etc. There are many online resources (budget worksheets) available to help you estimate your monthly expenses.
- Account for changing healthcare costs: Studies show that healthcare is one of the biggest expenditures for seniors. According to a survey conducted by the Agency for Healthcare Research and Quality, in 2011, the median annual health care expenditure for persons aged 65 and over was $4,206, with about 25% of respondents having expenses under $1,478 (25th percentile) and 25% having expenses over $10,289 (75th percentile). Healthcare expenses polled included payments to physicians, hospitals and other healthcare provider services. Over the years since this survey was conducted, expenses of this nature have only gone up. Getting a long-term care insurance policy, preferably one that will cover in-home care, assisted living as well as nursing home care, can help reduce your out-of-pocket expenses.
- Plan for surprise expenses: Think ahead about a child who needs financial assistance, looking after the grandkids or emergency repairs to your home. Financial planners recommend starting with a thousand dollars and adding a small amount to the fund every month.
- Indulging yourself: Saving for retirement does not mean you cannot have any fun. Making a budget helps tabulate your expenses and figure out where you can cut cost and divert those funds towards entertainment, travel or other fun activities you might have planned.
At Wesley Enhanced Living, we offer a full and diverse range of activities to help our seniors enjoy their golden years. A resident survey revealed that our first-class accommodations and programming, delicious cuisine and individualized care made them feel their quality of life has greatly improved after moving into our retirement community. Recreational and fitness programs, social and cultural events, discussion groups, worship services, volunteer opportunities—you can choose a variety of ways to stay active and engaged. Come and tour our Independent or Personal Care apartments, or skilled nursing and rehabilitation centers in and around the Philadelphia region to see the high quality of services we provide. One of our representatives will be happy to show you around, educate you on our services and discuss your needs.