5 Retirement Tips You Need to Know in 2019
Retirement is supposed to be an age of relaxation, free of the stress and hassle felt during the working years. Unfortunately, this isn’t always the case. For those who haven’t properly planned properly, retirement can be even more stressful than the working years. If you’re planning on retiring in 2019, or in the next few years following, there are a few key things you need to know. This article discusses just five of those.
1. Don’t Rely Too Heavily on Social Security Benefits
The amount you receive for social security isn’t going to be enough to live on. Relying too heavily on this income can be disastrous for your financial health. In fact, SSI typically only pays out an average of $17,532 annually, which amounts to around 40% of the average person’s income.
2. Don’t Retire By Yourself
Depression rates are high among retirees. The main culprits affecting senior’s mental health are boredom and lack of socialization. If you plan on retiring but don’t know anyone else who will also be retiring (within a year), then you should hold off a few years. Spouses should plan to retire at the same time for some guaranteed companionship.
3. Plan to Work – Kind of
Working in retirement? It might sound crazy, but a lot of retirees have found that supplementing their income with part-time or freelance work isn’t only good for their finances, but also their mental health. Freelancing has become one of the most popular ways to supplement social security income. Even if earners only earn an average of $10 an hour and work only ten hours (split between two days), they can add $100 a week to their pockets.
4. Plan Your Savings to Include a HSA
HSA stands for “Health Savings Account.” Medicare does not cover everything, and the out-of-pocket costs for retirees can dig into their retirement accounts. Having an HSA can help negate some of the potential costs, including those that could incur if you end up with an unexpected disease or illness in retirement. Even if you and your spouse each contribute $5 a week to an HAS from the age of 30 to 67, you could end up with over $9K to help offset medical costs.
5. Plan to Wait Until 67+ to Withdraw SSI
Although you can begin withdrawing social security benefits at age 62, you won’t be able to withdraw the full amount until age 67. Waiting means a much more comfortable lifestyle in your post-working years. Even if you plan to retire earlier, it may make more sense to withdraw larger amounts of money from your retirement accounts until you reach age 67.
If you take the five things listed above into consideration, retiring in 2019 or the next few years following can be the relaxing experience you so desire… without unnecessary financial stresses. The tips listed above should, of course, be paired with an adequate amount of savings for your own estimated cost of living to be most effective.