1. Plan for longevity

Albuquerque Journal - Parade - - Picks -

Peo­ple are liv­ing longer, and that means your money will have to last longer than you might ex­pect—even two or three decades. In fact, some­one who is 65 years old can ex­pect to live an­other 19 years, ac­cord­ing to the Na­tional Cen­ter for Health Sta­tis­tics. Since re­tire­ment to­day doesn’t au­to­mat­i­cally mean you’ll stop work­ing com­pletely and live off a pen­sion, you’ll need to ask your­self th­ese im­por­tant ques­tions to prepare:

Do I ex­pect to keep work­ing?

Many peo­ple in their late 50s and early 60s are al­ready plan­ning to hold on to jobs longer, while oth­ers are pur­su­ing “sec­ond acts.” If you’re fi­nan­cially sta­ble, you may be able to pur­sue fields and at­tain po­si­tions that ful­fill your pas­sions as well as your pock­et­book.

Where do I want to live?

Con­trary to pop­u­lar be­lief, the ma­jor­ity of baby boomers in their 50s and 60s are not plan­ning to down­size and head for a condo in Florida or Ari­zona. Nearly two-thirds have no plans to move at all, ac­cord­ing to a re­cent sur­vey. Many boomers will “age in place” in homes and com­mu­ni­ties where they’ve lived for years. Those who move don’t plan to go too far so they can stay close to their fam­i­lies. Boomers who are still look­ing for their “dream home” are the ex­cep­tion. In that case,

hous­ing costs might ac­tu­ally in­crease in re­tire­ment.

Will my cost of liv­ing change?

Get a han­dle—even a rough es­ti­mate—on how much your monthly ex­penses will be in re­tire­ment. In­clude es­sen­tials that are in your cur­rent bud­get but also con­sider ex­penses that could grow ex­po­nen­tially, like health care. If you have a job that of­fers health ben­e­fits, you prob­a­bly haven’t spent much time think­ing about the to­tal cost of your med­i­cal, den­tal and vi­sion ex­penses. Medi­care won’t cover ev­ery­thing. In 2016, Fi­delity es­ti­mated that a cou­ple, both age 65 and re­tir­ing that year, could ex­pect to spend about $260,000 on health care through­out re­tire­ment. Go to Pa­rade.com/re­tire to do some cal­cu­lat­ing of your own.

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