Retirement Bills and You
Retire On Track LLC.
The majority of Americans mistakenly believe their bills in retirement will be less than that of the recommend rate of 75 percent of pre-retirement income. They theorize that in retirement they will have significantly fewer costs, such as no mortgage payment. But, while this may be true, other costs increase - some dramatically.
These increased bills in retirement include - health care costs, travel expenses, and household costs (i.e. you may need to hire a lawn service and snow removal, because you can no longer handle this responsibility physically). Every year, retirement costs rise. One of the biggest increases in retirement bills has been medical expenses. According to research conducted by The National Coalition on Health Care:
Another large retirement cost that is often overlooked, is really not a true expense at all, but rather a loss of purchasing power due to inflation. Historically, the inflation rate has been about 3 percent. Did you know that with just the average inflation rate of 3 percent, costs double every twenty-four years? Most of us can expect to spend as much time in retirement as we did when we worked. Thus, we can expect to see our costs double during our retirement years. Ouch.
So what can be done to ensure you have saved enough toward your retirement? The first step is to check your current status using a retirement calculator, like Bob's Free Retirement Calculator. Using this calculator will help you to identify any shortfall now before it is too late. The next step is to educate yourself about finance and investing. You should read finance magazines, newspapers and web sites. Attendance of financial classes is another great option. Two national nonprofit organizations that offer investment education classes are BetterInvesting and AAII. You can also check the course offerings at your local college. Webinars and Webcasts are also convenient source of education. Retirementcalc.com has plans to offer these in the near future.
How do I keep up-to-date on the latest news impacting my retirement?
To keep informed about retirement topics, try our FREE Newsletter, you will receive a monthly newsletter full of Financial Tips & Hints information to inform and empower you to have a successful retirement. As an added bonus, Access Bob's Retirement Calculator for FREE.
We at Retire On Track LLC. want nothing more than to make your retirement a success. Retirement success, to us, means never having to worry if you have enough money, being able to pursue your dreams and having fun along the way. We provide the retirement calculator and Financial Tips & Hints to make it a reality - the rest is up to you.