Don’t Make These 3 Retirement Assumptions

In the past, we’ve discussed how many Americans, by and large, are unprepared for retirement. Many Americans are woefully behind on the recommended retirement savings and bank on Social Security payments, the reality of likely having to work a part-time job after retiring and other factors to make ends meet. In this post, we’ll cover some assumptions that many Americans also make about their retirement years – assumptions that have the potential to derail their twilight years and their finances should they not properly prepare. Here’s a closer look:

1. Assume You’ll Spend Less

Many Americans incorrectly assume that they’ll spend less money during their retirement days. And while it’s true that they may spend less on certain things (i.e., maybe their house will be paid off), expenses on other things are likely to rise. For instance, many in their twilight years like to vacation, travel to a second home in the winter or spend more on entertainment to stay occupied. Without the requirement to work 40 hours a week, there’s a lot more time that retired Americans have on their hands. Unless you plan to spend your retirement years sitting around your home doing nothing, assuming you’ll spend less isn’t always a safe bet.

2. Assume Medicare is Free

Medicare is one of the most popular healthcare options for senior citizens, but like all healthcare plans these days, it’s not free. Medicare is broken down into several parts, and while certain aspects of it are without cost, others charge premiums. For instance, Medicare Parts B and D, which cover outpatient care and prescriptions, both come with a monthly premium. Even the other parts of Medicare come with deductibles. According to Fidelity Investments, which assesses senior citizen healthcare costs on an annual basis, senior citizens 65 years and older can expect to spend up to $150,000 on healthcare costs throughout retirement, as medical care becomes more necessary with age. That’s a healthy amount of money to budget. What’s more is that Medicare is in the midst of a funding crisis that elected officials will need to resolve to ensure the program’s long-term solvency.

3. Assume You Won’t Need Any Type of Long-Term Medical Care

To piggyback off the above point, the U.S. Department of Health and Human Services estimates that the average senior citizen has a 70 percent chance of needing some sort of long-term care. While it’s true that Medicare will cover any sort of care as a result of an injury, nursing home stays, assisted living stays, in-home health care and other longer-term services are usually not covered. Many retirees don’t save for these expenses, assuming if the time comes they can sell their home to afford the costs. But the reality is that their spouse may not require specialized care, making it a moot point. Furthermore, long-term care doesn’t always equate to permanent care. With long-term care costing upwards of $170,000, budgeting or securing some sort of long-term care insurance can behoove seniors.

2 thoughts on “Don’t Make These 3 Retirement Assumptions”

  1. Medicare like social security is another victim of our CORRUPT politicians! Rosevelt created social security for the working man to be assured he would have an income when he retired based on what he paid in during his working years! Harry Truman and other politicians took one look at the amount of money that was amassed in the short time it was in effect. And saw a cash cow they could steal from. So he opened it up tone used by them as a “slush fund” for ignorant corrupt politicians to use for anything they wanted! ( example: Nasty nancy took 20,000 out to pay for her special little pens to sign her attempt to Impeach our elected President) Our country in so deep in debt its ignorant! And exactly why is that? Because the the people elected have no idea of how to run a country! But they do have a lot of ideas on how to waste money! The “stimulus” bill is loaded with so much PORK as to be ludicrous! Millions given to other countries for STUPID crap studies-nuclear money given to Iran and god only knows what else! And starving out of work Americans were allowed a measly 600 dollars to get by on. Now you tell me what a wonderful caring government we have! And now they have hatched a plan to make any money you have saved to end up being useless because since they went off the gold standard the money they print has NOTHING to back it! And every dollar the FED prints only devaluates it further! We had a President that was rooting out the CORRUPTION and they desperately had to everything possible to get rid of him. He kept every promise he made (When in your lifetime have you ever witnessed that in a politician) Actually had the country headed in a different direction towards a better living standard for everyone. So what was the result? they CHEATED, Bastardized the election process in every way! Because if he had been elected he would have eventually gotten every rotten one of them out of office! And now their big push is to DISARM the american public! To strip of one of the BASIC rights provided by the CONSTITUTION of the UNITED STATES! WHY? Because they need a very one sided playing field in order to subdue the people and carry out their MASTER PLAN! IF you own a gun your CITIZEN if they manage some how to take it away from you then you become a SUBJECT and open to any ROTTEN act they wish to pass. They who are a legend in their own minds are taking away your right to live your life as you see it! THEY wish to tell you how you will live your life and you will under the threat of punishment if you choose not to listen. You best stand up while you can! After all we do have the power to replace them! This is OUR country they are supposed to be working for us! Not the other way! You saw the CORRUPTION that took place in the election. And the refusal of the highest court in the lan refuse to even look at it! So that can only mean one thing! They have somehow CORRUPTED the judicial system along with everything else! So what as a citizen going to do? It is up to you! Or just stand there and let them ruin this country and remain getting rich off of your labor! Right now AMERICA is a very SICK place and its only going to get worse if we as a people don’t do something!

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