Social Security payments are about to be reduced by 2030. While your 401k might hold up for 10 or 15 years, living in Utah almost guarantees you’ll live way past your 80s. Holding on to your savings for 20 years or more might seem impossible, but it will only take a little bit of preparation.
Make Your Money Work For You
The moment you stop working, your money should do the work for you. Money in the bank or a static pension fund only loses its value (inflation) as the years go by. It certainly puts a strain on your savings, and you might need to tighten up your belt if you want it to last for more than 20 years.
If you want to live a bit more comfortably, you’ll need smart investments and adequate financial plans that can make your money grow. Invest in stocks or start a small business. Use the money you have to earn more money.
Upgrade your Health Plan
Medication and extended stays in the hospital can be a severe drain on your retirement fund. Basic Medicare (parts A and B) won’t do, as it only covers medical emergencies, hospice care, a few outpatient services (flu shots, counseling services, etc.), and medical equipment that you use (blood-sugar monitors, splints, crutches).
It doesn’t cover prescription drugs, non-emergency hospital admissions, hearing aids, dental work, Lasik surgery, and many others. You can expand your coverage through private insurance companies offering Medicare Advantage for your preventive medication and treatments, as well as procedures and aids that cover your vision, hearing, and dental work.
Make Changes Around the House
Emergency hospital visits can be a drain on your finances — even with coverage. Unfortunately, growing old puts you at a higher risk of suffering an accident in your own home. Slips and falls become common once you reach the age of 65, and 1-in-3 seniors experience a fall each year. These accidents can lead to extended hospital visits, permanent injuries, or even death.
Losing your mobility would only make matters worse, increasing your spending while decreasing your quality of life. Make a few changes around the house and make it more senior-friendly. Put a bit of focus on the bathroom because it’s the most dangerous room in your home. Install handrails where you need them and consider a walk-in tub to make sure there won’t be any accident while you’re taking a bath.
The USA spends a ton of money on healthcare, and one of the primary reasons for this elevated spending is obesity. Obesity costs women an additional $4,800 in spending a year, while men pay an extra $2,600. The extra expense goes down to $500 for women and $400 for men if they are merely overweight. Regular exercise can help you maintain your weight as well as your mobility. Social interactions can also make your mind sharper, keeping Alzheimer’s at bay.
Get smart, and be a little more proactive with your finances. Plan and make your retirement fund last for as long as you live, even if it’s 20, 30, or 40 years.