Preparing For Retirement: Tips For Those 60 Years and Older
As you near your retirement years, it's important to take proactive steps to secure your financial future. However, there are several challenges you may face along the way. At Hartford Funding LTD, we understand the unique needs of retirement-age individuals and are here to offer some tips to alleviate some of these challenges and help you retire on the right foot:
Take a Financial Inventory and Plan a Budget
One crucial aspect of planning for retirement is examining your finances and creating a detailed and realistic budget; this will help you better understand your expenses and identify areas where you can cut back if necessary. When creating your budget, consider all sources of income, such as Social Security, pensions, and investments. Factor in your day-to-day living expenses, healthcare costs, and any long-term goals, such as travel or home improvements. Remember that unforeseen expenses may arise, so building a buffer in your budget is important.
Decide When to Take Social Security
One important decision you'll need to make when planning for retirement is when to start taking your Social Security benefits. You can start taking your benefits as early as age 62, but your monthly payments will be reduced if you begin before your full retirement age (FRA). Conversely, if you wait until after your FRA to claim Social Security, you'll receive delayed retirement credits that will increase your benefits. Deciding when to take Social Security will depend on your individual circumstances, such as your health, other sources of income, and your retirement goals.
Medicare Benefits
Prioritizing your healthcare is essential as you age. One important step is enrolling in Medicare, a federal health insurance program for 65 or older. It can help cover some expenses associated with hospital stays, doctor visits, prescriptions, and other medical treatments. To enroll in Medicare, you must do so three months before your 65th birthday. By prioritizing your healthcare needs and being proactive, you can help ensure you have access to the necessary medical care without sacrificing your financial stability.
Consider a Reverse Mortgage
If you’re a homeowner, a reverse mortgage may be an option for supplementing your retirement income. A reverse mortgage enables homeowners age 62 or older to access their home’s equity without having to make monthly mortgage payments on the loan until the homeowner passes away, ceases to use the home as the homeowner’s primary residence, or defaults on the loan (including failing to make taxes or insurance payments, which the homeowner must continue to pay). The homeowner may receive a lump sum payment from the lender when they take out a reverse mortgage, which can be used for any purpose, such as supplementing retirement income, paying off other debts, or paying for healthcare expenses. Not only does this offer access to additional funds (from the home’s equity), but it can also help you better manage your overall living expenses and help you stay in the comfort of your own home.
Speak With a Financial Advisor For Guidance
Connecting with a reputable financial advisor or planner can be a great way to create a personalized retirement plan that suits your specific needs and goals. A financial advisor can help you assess and navigate complex financial issues, establish clear goals for your retirement, and create a plan to achieve those goals.
To learn more about reverse mortgages and to see if you qualify, contact the mortgage loan officers at Hartford Funding LTD.
If you’re looking to apply for a reverse mortgage on Long Island, consider turning to Hartford Funding LTD. We will patiently work with you to offer all the information needed to determine if a reverse mortgage is right for you and then guide you carefully through every step of the application process.
To learn more about our services and schedule an appointment with our mortgage loan officers, call us at (516) 595-7646 or visit our website.