Education is critical before developing a realistic retirement plan. More often than not, people believe they can live in retirement on the income they received in their last job, or even less. While this can be true for the most part, it does not consider new, retirement-specific expenses that were not previously absorbed by the individual.
Take rising health insurance premiums, for example. No longer will these be subsidized by an employer; instead they will be completely absorbed by the retiree.
There are other important benefits left behind upon retirement. These may have included subsidized travel, gym memberships, wellness programs, or even meal allowances. All are gone, post retirement.
In most cases the families we work with are shocked to hear that the average couple retiring at age 62 will spend $17,000 out-of-pocket on health care, each year, until they are eligible to enroll in Medicare. This is a major increase from the $200 to $300 a month range most were used to paying at their soon-to-be former employer.
Another important post-retirement consideration: what are your hobbies going to be, and how much will they cost to keep you busy? Whether it’s visiting the grandchildren, traveling for pleasure, or playing more golf, your cost of living may be going up. Keeping yourself busy, active, and healthy costs money!
These are just a few things to consider before building your retirement plan. Naturally, there will be far more, unique to your personal circumstances. Four Peaks Wealth Management’s role is to understand those, and to ensure they are considered before building your plan.
If you’re wondering what retirement may look like to you, we are ready to help. Contact us or give us a call today at (928) 225-2474 for your free retirement planning consultation. You’re likely to learn a lot!