Saturday, August 30, 2014

6 Things You Might Not Think To Save Up For As You Get Up There In Years

There are numerous things you can do in preparation for your later years. Here are some important steps you should take as you approach your senior years in life. Here are five things you’ll be glad you saved up for when you start to get older.

Higher emergency fund


An emergency fund for someone in their 20s is much more for someone approaching retirement. Health care becomes more expensive as do common household repairs. Boosting your emergency funds to a higher level may be a good idea as you access your legal, health and homeownership needs.

Medical costs


Medical costs are additional expenses you must consider in aging. Many mistakenly believe that all of their insurance policies will cover care as they approach their later years. With the average life expectancy increasing, one has to be assured that there are ample funds to cover hospitalization, coinsurance and long term care if needed. This will prevent you from putting an unnecessary burden on your loved ones as you get older. People who had Medicare paid $38,688 for care during the last five years of their life, the National Institute on Aging suggests.

Dental Costs


After decades of chewing, drinking, maybe even smoking etc… your teeth are bound to get a little worn down. Some more than others obviously, but the proper care as far as brushing and flossing are always a good idea. Even with the proper care though, dental costs could add up in hurry if you’re frequenting the tooth doctor. Some of these costs could be as simple as a co-pay if you have dental coverage for a simple cleaning. Sometimes though, as you get older, getting more than a simple teeth cleaning done can become common. Dr. Peter Wong does dentures up in Surrey in Canada. More often than not, dentures end up being for those who are getting up there in years. Saving up for stuff like this when you’re younger is good idea. 

Downsizing


Homeownership is something many people don’t consider. When the children leave the home, the retired couple may want to downsize. This may mean taking out another mortgage on the home. Since the home should ideally be paid off prior to retirement, once should plan for closing costs, remodeling, moving and other expenses most often associated with moving into a newer, smaller home. This can be especially important if a person is planning to take out a 15-year mortgage. 

Catch-up contributions


Catch-up contributions give people over 50 the opportunity to catch up on their retirement. If a person reaches the age of 50, one can contribute thousands more over the annual limit. As of 2012, that amount is $22,500. This is good if a person decides that they want to retire a few years earlier or if circumstances happened when they were younger preventing them from saving on a certain level.

Long term care insurance


Long term care insurance is beneficial for those who may end up in a nursing home. Many families are surprised to learn that Medicare doesn’t actually cover the cost of long-term care. Medicaid also has its share of constraints. It cannot be used until the savings are practically depleted. When a person reaches their early sixties, long term care planning is recommended.

Here are five things you should save up for as you get older. Doing these things will prepare you and your family for life’s challenges as you get older. It’s never too late to start thinking ahead about retirement.

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