Thriving in Retirement | Planning for Health Care Costs

Planning for retirement can be stressful. There are a lot of unknowns that need to be accounted for and there are plenty of details that should be considered, but at the end of the day, your client should still be excited about retiring. Retirement opens up a whole new world of opportunity and many new and exciting things will take place in this phase of life.

It’s important then, to make sure that your client is confident about thriving in retirement. There are plenty of retirement planning resources that you and your clients can take advantage of so that you can keep the surprises to a minimum and help them retire on their terms.

Investing and Contingency Funds

It may go without saying, but one of the most important things your clients can do is invest. The more your client has invested, the more apt the will be to deal with unforeseen financial expenses. Make sure that your client is investing as much as they feel comfortable during their working years so those investments will pay dividends later. It’s also crucial that part of the planning process includes health care costs – a realistic view of what their out-of-pocket costs will be.

Encouraging your clients to create an emergency account for unexpected events is another strategy for thriving in retirement. Knowing that your client has already put aside a contingency fund can help them not worry about the “what if’s” of retirement. This money won’t draw from their general living funds and should be used only to address surprise expenditures.

What does thriving look like?

Every client is different in their goals for retirement as well as their financial situation. Your clients should be realistic about their non-essential spending. It’s important that you help clients strike a balance between going all-in on their retirement plans and planning for unforeseen expenses. Relaxation and entertainment are no doubt important things for retirees to spend money on, but try to make sure they are realistic about their budgets so that their R&R doesn’t impede their overall quality of life or put them at risk if they had a sudden financial emergency.

Suggesting clients take care of certain expenditures before retiring is another way to help their money stretch. It may be worth it, for example, for your clients to replace their roof while they are still working so that it last the bulk of their retirement. Similarly, upgrading or replacing a car might feel financially more palatable while money is actively flowing in instead of drawing from a limited pool of resources that might hamper their ideas for that money.

No matter the approach you take or suggestions you give, stay positive and be excited with your client for their retirement. It’s a part of life that everyone should be looking forward to and it’s your job to make sure that their retirement planning resources are in place to help them in their retirement goals.

Pin It on Pinterest