Potential long-term expenses to account for in retirement

By Metro Creative

Retirement planning involves more than just investing in a 401(k) and/or IRA. Individuals who hope to live comfortably in retirement must account for various expenses, including those associated with their health.

A 2013 report from the U.S. Senate’s Commission on Long-Term Care found each year an estimated 12 million adults in the United States require some type of long-term care. Planning for the following potential expenses can help men and women ensure they will have enough money to live well in retirement.

Housing: Many individuals would prefer to spend their golden years living in their own homes. However, adults who can no longer take care of themselves and/or their homes may need to move.

Homeowners who simply want to downsize may be able to finance their transitions to retirement communities by selling their existing homes, but those who need to move into assisted living facilities may find that even selling their homes might not provide enough capital to pay for such residences.

According Genworth’s 2016 Cost of Care Survey, the annual cost of assisted living facilities greatly varies by state, with costs as high as $65,550 in Massachusetts and as low as $30,438 in Missouri. Whether they invest in long-term care insurance or develop another plan with their financial advisors, men and women must consider ways to finance potential housing costs in retirement.

To read more, pick up a copy of the September/October issue of LiveIt magazine.