According to an annual study by Fidelity Investments, 65
year-old’s need $130,000 per person just to cover the costs of healthcare
until death. This includes such things
as the cost of medications, Medicare premiums, co-payments, eyeglasses, and
hearing aids. This estimate is18% higher
than it was just 2 years ago, primarily due to increases in drug costs. This $130,000 does NOT include long-term
care, home health or nursing home costs, which can be in excess of $7,000 per
month.
This healthcare dilemma is just one of the reasons Bloomberg
News states that retiring too early is the biggest retirement mistake people
make. Postponing taking Social Security until age 70 provides 76% higher
payments than if benefits are started at age 62. In addition, 60% of Americans
actually want to work past age 65. Continuing to work can be fulfilling. Many who continue to work past age 65 say
they do it not for financial reasons but because they like to work. However, 40% of Americans retire for
unexpected health reasons.
Age 65 may seem like a long way off for some of you, and
therefore this information may not appear relevant. However, having passed age 65, I can tell you
that it comes much faster than you can imagine.
Age 40 is certainly not too early to begin serious consideration of
these issues, in order to have the most choices available to you. In addition, the time to start saving for
retirement is NOW, regardless of your age.
“If ye are prepared, ye shall not fear.” D&C 38:30
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