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Although many Americans plan to retire at age 65, the reality is that the end of their careers often comes much sooner. Despite conventional wisdom, the average retirement age in the United States is actually 62 recent report. Nearly six in 10 retirees left the job market earlier than expected, according to new research from the Transamerica Center for Retirement Studies. That early departure date was often due to medical issues that limited employees’ ability to continue in their roles.
Whether you’re in a similar situation – or simply plan to retire once you reach the traditional age of 65 in 2025 – it’s never too early to start thinking about your retirement plans. And for those anticipating an end to their workday next year, it’s crucial to get your finances in order now, especially without the economic support that a full-time job can provide. Below we highlight three of them lots of smart moves for those preparing for retirement in 2025 should consider making now.
Start exploring your potential long-term care insurance options here now.
3 smart moves you can make now if you plan to retire in 2025
Although planning for retirement can be a complicated process with many considerations to make, soon-to-be retirees should strongly consider taking these three steps now:
Check your long-term care plans
Do you plan to spend your golden years alone at home or eventually with one caretaker in the house? What about potential nursing homes or assisted living facilities? All these options come with a price tag that will undoubtedly increase in the coming years. By opening a long-term care insurance Now, if you’re younger and healthier, you may pay a lower premium for more robust coverage. Waiting can be a costly mistake. And because long-term care providers can cover the costs of having family members and friends serve as caregivers, this unique insurance option can also help you age in the comfort of your own home.
Start here by requesting a free long-term care insurance quote.
Consider adding a Medicare supplement
Medicare is generally available to adults age 65 and older. But it would be a mistake to assume that this insurance provides the coverage you need or that you are used to having through your current employer. There may be costly gaps in coverage that can only be covered through a “Medigap” or Additional Medicare insurance policy. This unique type of insurance can help cover costs related to deductibles, co-payments and more that you would otherwise have had to pay directly yourself. Supplemental Medicare insurance may not be beneficial for everyone (you should weigh the costs of a plan versus what you have to pay yourself without one). But for many retirees and those planning to leave the workforce soon, a supplement can provide crucial protection.
Learn more about your supplemental Medicare insurance options online today.
Reconsider the locations of your emergency funds
It is always important to have one emergency fund but especially when you are retired. That said, where you keep this money is almost as important as how much you have in it. Because the average interest rate on savings accounts is currently below 0.50%, you are missing out on significant interest potential if you keep your money there. Instead, consider taking it to a savings account with high returns which has all the features of a traditional account, but with a interest now over 4% or higher. By moving your emergency fund to this account, you can grow your money without risk.
See what interest rate on high-yield savings accounts is currently available to you.
The bottom line
If 2024 is your last full year on the job market, you should start making financial preparations now. By considering your long-term care and Medicare needs today – and reviewing the locations of your emergency funds before 2025 – you can increase your chances of financial success and security, both in the new year and into the many years of retirement that are coming.
