As boomers enter retirement age, many have deep concerns about finance, paying for health care and just meeting the rising cost of living. Some seniors are resolving these issues by moving outside the United States.
Between 2010 and 2015, about 17% of American retirees moved abroad. This figure currently equates to nearly 400,000 individuals, according to the Social Security Administration. Top destinations of these retirees have been Canada, Japan, Mexico, Germany and the UK. One of the reasons these retirees who are also veterans have moved to Japan is to join the thousands of U.S. military service personnel there. While the cost of living is higher there, health care is much more affordable.
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Top Fears of Workers Approaching Retirement
A recent survey by Transamerica Center for Retirement Studies (TCRS) asked employees headed for retirement what their tops fears are about retirement. Here were the top five responses:
- Outliving their money (51%)
- Social Security will be reduced or eliminated (47%)
- Health will decline, which will require long term health care (45%)
- Suffering cognitive problems such as dementia or Alzheimer’s (35%)
- Inability to receive adequate or affordable health care (32%)
For retirees that fear they will outlive their money and go broke, it’s best to plan alternative income streams, which may mean post-retirement work or investing. Working with an experienced financial planner can help prepare you to establish a long-term budget. The more you work, the less strain there will be on your finances. Your strategy should be to save as much money along the way as possible.
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Social Security Reduction
The future of Social Security is uncertain for many people, although the Trump Administration has promised to leave existing benefits alone. At the same time, the GOP has proposed to counter the system’s deficit by cutting all benefits. Unfortunately, there is little seniors can do other than contact their Congress members and let their voices be heard.
As you age, living a healthy lifestyle becomes more and more important. That means you need to eat healthy, get plenty of exercise and rest and maintain an upbeat energy level. Apart from improving your health, develop a strategy so you are ready for long-term care in case you need it. Buy long-term care insurance, keep in reserve your home equity and set aside an emergency fund you won’t touch until you need to pay for long-term care.
Address all your retirement fears and prepare well to enjoy your post-retirement life to the fullest!