Retirement Planning Blog

Life is fraught with difficult questions. Some can be resolved smoothly and some may require a great deal of effort. But, as per retirement planning is concerned, there are so many ways to secure our future that we really needn’t worry. The common problem in this realm is we don’t know how much money needs to be saved for that better tomorrow.

According to survey results, about 44% of the American professionals along with 29% of mature adults of the age group 55 and more hold that they don’t know what percentage of money should be saved for retirement. However, some of the people belonging to the age bracket of 55 and more opine $250,000 or may be less than this should be sufficient when they retire. Moreover, President of ShareBuilder Dan Greenshields holds retirement savings need to be pretty much higher as in old age an individual is more prone to illness which results in greater healthcare and medical expenses.

According to Mr. Dan Greenshields, an individual’s retirement savings should be around $500,000 and $1 million. However, it may vary depending on the living style of the person. To be more precise, he added “If you live in a low cost state you need less because the cost of living is lower” and “If you live in Washington DC, New York, or Los Angeles, you need more.”

It has been found that as much as 20% of the American population nearing their retirement age believes that saving $500,000 should be adequate while 13% aims at $750,000 retirement savings. The survey reports also reflect that about 20% of Americans are trying to save $1 million minimum and 6% aiming at $1.5 million savings before retiring. About 8% of the American population is striving to maintain $2 million in their bank accounts for the retirement.

However, it is interesting to note a large number of Americans do not calculate savings for retirement in actual terms.  Almost 47% of them indulge in guesswork to decide the amount of savings to be adequate in their retirement age. In contrast, 29% of the Americans believe in doing their own research, 9% take the advice of the financial consultants and another 9% rely on the retirement calculator. Those who calculate their retirement savings on their own consider factors like healthcare and living costs, inflation, income at retirement age and Social Security income.

It has hit the world drastically in an unprecedented manner; it has shaken the whole world as never before. The recent recession has resulted in a series of job loss, financial market loss, drastic fall in the real estate values and a lot more setback. And the wave has also reached to the retirees and also to those who are in verge of their retirements. They are certainly feeling the heat of it.

As the recession destabilizes the world economy, one of the segments that feels its heat at the very first instance is surely the job market. Organizations need to go for cost-cutting, which resulted in cutting down of manpower. Many had to lose their jobs in the recession. According to an AARP survey, 30 percent of the Americans in the age group of 45–64 have escaped layoffs, but have had to settle for a pay cut. 29 percent of them have ceased to contribute to various investments like 401(k), IRA and others. 18 percent have withdrawn their funds from these accounts prematurely. According to the executive Vice President of AARP, Nancy LeaMond, this population of 45 to 64 age-groups is particularly squeezed. This economical downturn has left them in such a squeezed state where they hardly focus on their own financial and retirement security as they have to take care of their aging parents as well as their children.

Recession is also having an impact on the state of health of people, especially to this 45 – 64 population. With a rise in the health cost, they are required to pay more to their health insurance premium. 22 percent have faced this problem where they have been asked by the health insurer or their employer to pay the extra amount. As a result, 9 percent, being unable to pay the higher premium, lost their health insurance coverage. 27 percent are also having problems in paying their medical bills. People have to take some unusual means to cut down the medical care expenses, which may prove to be quite harmful sometimes. Many have cut down their necessary medical or dental work; some cut their pills in half or even skipped the doses.

The impact of recession can also be seen in the driving habit of the seniors. Many have cut down on driving in order to reduce the fuel costs. Some have also opted out of their gym membership.

HealthCare Tips for Seniors

In order to be fit and healthy even at old age, you need to follow some proper health care benefits. Healthcare of seniors is given good importance in the US and there are many benefits that are available for the retirees and aged Americans. You need to follow some health care tips to be fit even if your age is passing by.

Proper health care is essential for the aged in order to maintain a descent lifestyle and be stress free. With the soaring health care costs, it is vital that proper health care tips are followed to prevent against various health related complications and be fit. Ideally, health tips include opting for a number of health care benefits and also leading a good lifestyle.

Opting for a proper retirement health insurance program is one of the vital tips that the older adults should follow. As most aged depend on fixed sources of income to pay for their medical care, a health insurance policy can do a yeoman’s service to them. The retirement insurance benefits are major sources of paying for the health care in the US. Most of the health insurance plans also cover those who are fully or partially disabled.

Medicare is the national health care insurance program in the US. It is a federally sponsored health care program which provides a number of health care benefits. For lower income people, Medicaid is the right health insurance plan. It usually covers retirees and their families, low income Americans and parents and people of lower income.

In addition to these, you can also opt for other private health care insurance benefits. There are many short term and long term benefits which provide good retirement benefits. However, the applicant needs to pay the premiums.

To be fit and healthy, you need to maintain a healthy lifestyle. A healthy body makes you happy in the mind and also enlivens your inner confidence. In order to stay fit, maintain a healthy diet and lifestyle. Try to eat more fruits, vegetables and food items with low calorie and rich in calcium and vitamin D. Drink at least of water. Some workouts or exercise can also complement your health lifestyle. To back it up, try to visit the doctor and get check ups done at least once in two months.

Proper mental health is also needed to have healthy retirement lifestyle. Being happy and taking care of your mental health is also a major health care tip To make your mind stress free, have a healthy lifestyle free from stress, socialize and be engaged