Aging in Place

PERSONAL FINANCE

Planning for Aging In Place—Key Points on Personal Finance

#1. DEVLOP A CLEAR PICTURE OF OUR POST - RETIREMENT FINANCES Having a financial plan, regardless of your financial circumstances is key to establishing a realistic retirement budget. The first step is to take a look at the big picture, i.e., your financial assets, which includes your expected monthly income in retirement. The second step is to create a monthly budget based on what you think your expenses are/will be in retirement including a bit of cushion for emergencies and unexpected events. For older adults with few assets, struggling to cover their expenses before and during retirement, consider reaching out to your local Area Agency on Aging and/or benefitscheckup.org to identify resources and programs you may qualify for. Even if you are already retired, having a plan will help you keep track of expenses and will enable you to adjust your goals if unforeseen costs arise. Remember, you will have more peace of mind in retirement if you have developed a plan to maximize your financial security as much as possible. #2. GET ADVICE Retirement is a big life change. To many, it can feel overwhelming to try and make sense of the complex financial decisions ahead. When should I file for Social Security? Should I pay off my mortgage or focus on other debt? Is a reverse mortgage a good idea? Will I be able to afford health insurance if I retire before I am eligible for Medicare? After I retire, do I still need life insurance or long - term care insurance? In reality, few people possess the expertise, the time, or the desire to actively plan for and manage these aspects of their lives. For some, professional estate planning and financial advice can be very helpful. For others, their income during retirement may be tight and could fall short of covering basic needs; pursuing guidance from a local Area Agency on Aging on financial and planning resources may be helpful. Financial advisors have the expertise to assess the big picture of your financial situation and help you see how you can be better prepared for retirement under different potential scenarios. Depending on your needs, you may also want to seek guidance from a tax advisor or an attorney with estate planning expertise and elder law. #3: CREATE AND SHARE KEY DOCUMENTS It ’ s important for your family and/or trusted advocates to know where you store important documents when you are no longer able to speak for yourself. Ensuring they have access to these will go a long way in helping them honor your wishes. Questions you should be asking: • Do I have the appropriate documentation with regard to my financial records? • Are these documents up to date? • Do any of them need to be revised to reflect my current life circumstances or priorities? • Do key people know where these documents are and how to access them?

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Aging in Place: Your Home, Your Community, Your Choice

Personal Finance