Retirement Income
Retirement Income: Paying for Your Future
It’s a scary fact that bankruptcy among senior citizens is on the rise. This is because many retirees have not been fully educated about how to prepare for their future. Many withdrew too much money from their retirement savings over the years and ended up not having any other means of retirement income, while others just didn’t save enough money to support themselves after retirement.
A Consumer Bankruptcy Project at Harvard also shows that 48% of bankruptcies for seniors aged 65 years and older are all related to high medical bills. This includes everything from expensive prescription drugs to the loss of social security benefits. But just because you are retired doesn’t mean that you can’t live comfortably or afford to pay for your current health bills. You just need to make sure that you don’t outlive your retirement assets and that you take advantage of your retirement income plan.
The Comfort of Retirement Income Security
According to the National Center for Health Statistics, which provides U.S. public health statistics on everything from pregnancies to mortality, the life expectancy for a person in 1950 was 68.2 years. By 2007 it was raised to 77.9 years.
This increase in life expectancy is not only a result of people eating healthier and participating in active senior activities more, but also because seniors are more prepared for retirement with an established sense of retirement income security.
You may have saved diligently throughout your career, but you never know what other retirement expenses may arise. That’s why you should always have a retirement income plan that covers what assets, investments and expenses you will have during retirement. It should include supplemental retirement income like part-time work, social security, stocks and bonds, as well as any taxes on your retirement income.
Calculating Retirement Income
You will also need to use a retirement income calculator to determine exactly how much you can spend each month. These calculators are very in-depth, and you will need many personal documents such as tax returns, mutual fund statements and any other investment statement to complete them successfully. Once you have completed the retirement income calculator, you will have a better idea of how much money you can spend each month.
