The world is an exciting place and we are now able to enjoy a better quality of life than at any time in history. You really can plan to accomplish all of those goals that you have been putting off until retirement. You can live a long life and maintain good health to remain vibrant and active. To make the most of those years, you need to be financially secure and have the available resources to pursue all of your dreams. Retirement planning may not be your favorite activity, but you have several good options and things to consider.
Where to Retire
No longer tied to a job and kids all grown, you can live wherever you choose. Whether you have always dreamed of living near the ocean or just want a small cottage in a lake community, you can, and should, put yourself first and choose the location most enjoyable and comfortable for you. Regardless of where you decide to put down roots, many cities and communities welcome retirees and some cities have much better walkability scores than others. If getting the most bang for your buck is a top priority, check out U.S. News & World Report’s recommendations on where to retire for under $75 a day.
Working Past 65
Semi-retirement and continuing to work past retirement age is more the norm these days, with life expectancy increasing across all demographics and work providing many benefits socially and mentally, in addition to the obvious financial gains. People born in 1960 or after are not able to collect full Social Security payments until 67. The payments increase by 8 percent for each year past retirement age that you delay, taking them up to age 70. There can be some drawbacks to working past retirement age. Consult a financial adviser for the best path for you.
Home Equity Loans
There are two types of equity loans that many people get confused. One is a home equity loan where the borrower takes a one-time payment upfront. They have a fixed payment term and usually have a fixed dollar amount that is paid each month. Once they have paid back the loan, they can apply for another and just pay the loan set-up fees again. Another very popular option for seniors is the Home Equity Line Of Credit. Retirees are able to borrow all at once or over time based on their individual needs. Interest rates are often variable and terms for repayment vary based on lender and program options.
Life Insurance in Retirement
Whether or not you really need life insurance in retirement depends on a few basics. If your children are self-sufficient and your spouse has sufficient assets, there is no need to continue with the regular expense of paying life insurance premiums. If, however, you are still working and your death results in a significant decrease in the income that your family needs, you may still need to carry enough life insurance to provide for those depending on you.