![]() Delaying benefits after your full retirement age increases the benefit payment, which also leaves more for a surviving spouse to collect. Surviving spouses can collect a portion of the deceased partner’s benefits as early as age 60 (or 50 if disabled). Social Security survivor payments also need to be considered before you start collecting benefits. The financial options include insurance to cover final costs and the loss of income, as well as structuring pension payments so that they continue after the pension recipient passes on. Even a couple with simple finances can benefit from an estate plan. To stave off this eventuality, put together a financial plan that includes the loss of either spouse, along with an up-to-date will, power of attorney and healthcare power of attorney. Death of a spouseīeyond the emotional shock of losing a life partner, there can be significant financial implications, too. If you’re giving money outright, remember that gift taxes apply to any amount over $17,000 made in one year. If you expect to be repaid, structure the loan with a written agreement. Decide how much assistance you can reasonably afford and set clear limits with family members before doling out money from your retirement assets. It’s only natural to want to help a son or daughter hit by a financial crisis. The best time to shop for long-term coverage is in your 50s or early 60s. While some retirees can depend on their own substantial savings or one help from family members, another option is to purchase long-term care insurance or to add a long-term care rider to a whole life insurance policy or an annuity. ![]() Medicare doesn’t cover long-term care and Medicaid assistance is available only after retirees spend down their assets to qualify for low-income status. The cost of extended care as you age can be shocking: A private room in a nursing home can run more than $100,000 each year, while a home care aide will run you around $50,000. If you’ve got the option while working, consider opening a health savings account (HSA), which allows you to save and invest tax-free and doesn’t tax withdrawals for eligible healthcare expenses, including Medicare premiums. Retirees should budget between $450 and $850 a month for each person, including insurance premiums and out-of-pocket costs. Another option is to look at one of the many Medicare Advantage plans, which include Part A and Part B and can add coverage for vision, dental and other costs. Uncovered healthcare costsĪdding Medicare Part D coverage can handle prescription costs, while private Medigap insurance can be added to handle expenses not covered by Medicare. ![]() Another consideration is budgeting for improvements that can help you age in place, such as wheelchair access, a walk-in shower, better lighting, ergonomic door handles and more. That can include needing an entirely new roof, furnace and air-conditioner, major plumbing problems and other issues that can lurk in a paid-off home you’ve owned for years.Įxperts recommend setting aside 1% to 2% of your home’s current value for annual maintenance and repairs, as well as having your home thoroughly inspected by a professional who can help you identify potential problems. ![]() Unexpected home repairs are the most common surprise, according to the Society of Actuaries. “Withdrawing an extra $10,000 from savings for a new roof might not seem like much in the grand scheme of things, but it can interfere with plans for other expenses if you haven’t anticipated it-especially since those funds are now no longer at work in the market,” says Rob Williams, managing director of financial planning at the Schwab Center for Financial Research. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. However, if you’re prepared, you can avoid allowing seeing these disruptions derail your golden years.Ĭonsider working with a financial advisor to create or update a retirement plan.įinding a qualified financial advisor doesn’t have to be hard. According to Charles Schwab, there are five retirement surprises, which might come as a financial shock to many older workers. The Hidden Retirement Expenses You Should Be Planning For, According to Schwabĭespite your best planning and efforts to prepare for retirement, you’re still likely to encounter some kind of unexpected challenges after you stop working. ![]()
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