According to a 2019 survey by Transamerica Center for Retirement Studies, two-thirds of millennials, Generation X, and baby boomer workers believe they will retire with a comfortable lifestyle.
You could spend a lifetime in order to cover your retirement costs, traveling, healthcare, and hobbies but, from time to time, surprises may arise that could ruin your plans and drain your savings significantly. By knowing what to expect and planning accordingly, you could avoid taking major blows to your finances.
That’s why, today, we wanted to cover 6 things to look out for that could ruin your retirement plans. Be on the lookout, stay vigilant about how you save money and you will be able to overcome these obstacles so that your golden years can remain truly golden.
Long-term care costs
Basing your long-term health costs on the costs you pay nowadays is a huge mistake many Americans make when planning for retirement. You may be healthy now, but did you know that there is a 70% chance you may need long-term care services when you turn 65? That’s not a figure you should be taking lightly.
More than that, 20% of seniors may need long-term care for more than five years. So, when figuring out how much you should save, keep in mind the following, staggering costs. According to a 2019 Genworth Cost of Care Survey, you’d be expected to pay $102,200 per year for a private room in a nursing home, $48,612 per year for an assisted living facility, and $52,624 annually for a home health aide.
And if you’re planning on relying on Medicare alone, know that in most cases the program won’t cover costs for more than a few months. If your income or total assets are below state eligibility requirements, Medicaid won’t help either.
In order to spare your savings, you should opt for long-term care insurance!