Financial Planning for Retirement in Florida | Cost Considerations
Everyone may dream of what they’ll do in retirement, but navigating the transition—and the many decisions you’ll have to make during it—can be challenging. Whether you’re getting ready to retire or have already been enjoying your retirement and are considering moving to senior living, understanding the nuances of your retirement finances can help you make the best decision for your circumstances.
While the exact cost of retirement varies from person to person based on a variety of factors, you can start figuring out what that number is for you by exploring your retirement options and identifying which one works best for you, both financially and in terms of your lifestyle. The retirement planning tips outlined below are designed to help you get started and cover the basic financial aspects of retirement you’ll want to consider.
How Much Do You Need to Retire?
To calculate how much to save for retirement, you first need to ask yourself a handful of questions. The numbers you come up with as answers to those questions will help you make your calculations. Courtesy of the American Association of Retired Persons (AARP), here are four factors you need to consider when planning for life in retirement:
- How much will you spend?
- How much will you earn on savings?
- How long will you live?
- How much can you withdraw from savings each year?
The Cost of Staying Home for Retirement
They say there’s no place like home, and some seniors may choose to spend their retirement in their homes. Whether it’s because you’ve already paid off the mortgage or simply because you prefer the comfort of the familiar, there are many reasons why you may decide that staying in your home for retirement is the best choice for you. However, it’s still important to consider additional expenses you’ll need to save for, particularly regarding your preferred lifestyle. Travel, dining, property taxes, home maintenance, and club memberships are among the aspects of your retirement life that will each carry with them a price tag.
Your health and well-being is another important financial aspect to assess. The U.S. government reports that 7 out of 10 seniors will eventually require long-term care. With life’s unpredictability, factoring the potential cost of in-home health care—which could mean paying an average of $4,576 per month for a home health aide, according to Genworth—into your financial plans can help keep you prepared. For added assurance, you could also opt for long-term care (LTC) insurance, which can have monthly payments ranging from $200 to $500, depending on your age.
The Cost of a Retirement Community
A popular alternative to staying at home in retirement, moving to a senior independent living community offering a full continuum of care on-site can give you greater peace of mind and more predictable costs. Downsizing to a home in a community that requires less upkeep and maintenance can be very cost-effective and offer a more fulfilling social life.
Plan Your Retirement at Abbey Delray
Saving for retirement and planning for the future can feel daunting, but choosing the right senior living community can help. If you or a loved one are retiring to Florida or looking for a new senior living community that merges luxury with convenience, look no further than Abbey Delray. Tucked along the stunning coastline in Delray Beach, Florida, our rental community is ready to help support your passions and goals, encourage meaningful connections, and make every day extraordinary. Ready for your next adventure? Our doors are open. Contact us today!