OldMtWoman added in the variable that will break many a retirement plan — health issues! “Medical costs can kill us.”
Most Americans are underestimating their retirement health costs. Between insurance costs, out of pockets, and co-pays; the costs are high. CNBC says a “healthy” 65 year old couple will need close to $390,000 to cover health care costs (Medicare part B, D, dental, etc).
Additionally, many Americans”plan” on working into their 70s. Health issues can easily derail this plan. I had an accident and had to take an early unplanned retirement. Fortunately, I was a saver with little debt (small mortgage).
I listen to friends and relatives describe awesome vacations, new cars, toys etc. I then ask if they have cleared debt, accumulated retirement savings, obtained long term care policies, etc. I get the response -. ” NO, but I have plenty of time and I plan on working until my 70s!”
The looming retirement crisis is coming.
What can we do?
I look at this as another crisis to prep for. From our posts, I gather that most of the people on the forum are 40s-60s.
If you are still working, I would take a long realistic look at my retirement accounts and plans. I might also consider moving or putting retirement funds in a ROTH (nontaxable) as I think as the retirement crisis gets worse, the government will look at your taxable income and tax/phase out SS. I would also look at paying off as much debt as you can. I would also consider making plans to be more self-reliant (gardening, etc) and taking steps to stay healthy (stop smoking, exercise, etc).
I just looked out and it is snowing A LOT! I must run.
I look forward to reading others thoughts on this subject and steps we can take.