In the past, people who were entering their 60s were considered to be “retirement age”. This is no longer the case with more and more people choosing to stay on the job for many more years. It’s up to the person whether or not they choose to leave the workforce and enjoy the simple life. Rethinking their financial situation will allow them to make the choice that best fits their needs. Financial planning will let them live comfortably for several years, even for people starting over financially at 60 and considering a new career.
Here are some important financial planning tips for your 60s.
It’s Never Too Late to Open a Savings Account
A very practical financial tip is that no matter how old you are, it’s never too late to open a savings account. Even setting aside a few dollars a month will eventually turn into a sizeable cash value. The more you put into your savings account, the more you will have to fall back on if you want to take a trip or have an emergency expense you may not have been fully prepared for otherwise.
Shop Around for the Best Insurance Rates
Another way to save money as you age is to shop around for the best insurance rates. Your homeowners’, auto, and other types of insurance can be bundled together to reduce your premiums. Add in a safe driver discount, and your premiums will go even lower. If your insurance policies are more than two or three years old, it may be time for you to schedule a review to make sure you are not paying any more than you should.
Stick to Your Budget
Create a budget that you can live with. Know what bills you have and how much money you have coming in each month. Put together a budget that includes a retirement plan. Make sure that you also allow for funds to go into a savings account as well. Learning to effectively use a budget will allow you to live comfortably on a smaller amount of money. It will also give you an opportunity to use your money to its fullest advantage over the next several years.
Choose When You Take Social Security
The longer you wait to sign up for social security, the more you will get each month when you do start to receive payments. Many people are choosing to continue to work into their 70s and are putting off social security payments. If you want to stay on the job, put off filing for social security for as long as you feel comfortable with it. It will give you a chance to save a little extra money and keep you as active as possible in the long run.
Know When You Want to Retire
Set a retirement date. Whether you are in your 60s or 70s, you should be able to work for as long as you feel comfortable. Working will keep you active and will also give you additional financial resources that you can utilize as time goes on. Plan your budget around your retirement date to ensure that your financial resources will be enough to see you through once you decide to give up your job. Your full retirement age is between 65 and 67, depending on your birth year.
If you stop working before retirement age, the amount you receive monthly will decrease yearly before the official retirement date.
Entering your 60s doesn’t mean you have to slow down. The agents at Pierce Insurance Group can assist you in planning for your future. Whether you choose to continue working or enjoy retirement, you have several options available for you. Schedule an appointment today to find out how you can live comfortably for many years to come.