D E C I D E<\/p>
“Nothing happens until you decide.<\/p>
Make a decision and watch your life move forward.\u201d<\/p>
— Oprah Winfrey<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
![\"\"](\"https:\/\/i0.wp.com\/handaathomeandaway.com\/wp-content\/uploads\/2020\/01\/HA-March-2015-California-Surf-2-scaled.jpg?fit=2560%2C2077&ssl=1\")
\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\tRESOURCES FOR DECIDING<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\n\t\t\t\n\t\t\t\tBUDGET<\/div><\/div><\/div>HOUSING DECISIONS<\/div><\/div><\/div>HOUSING + CARE WEBSITES<\/div><\/div><\/div>\t\t\t<\/div>\n\t\t\t\n\t\t\t\tAVERAGE EXPENSES<\/strong><\/p>Most of the retirement resources available focus on one thing (money) for a very good reason.\u00a0 For most people, the decision to retire from full-time employment must be made carefully and deliberately so that housing, health care, and other living\/travel expenses will fit within the budget that might be expected to last for 30 or more years<\/a>, depending on your age.<\/p>Households run by adults 65 and older generally spend an average<\/a> of $48,872<\/a> per year or roughly $4100 per month.\u00a0 If you are single, however, your spending could be closer to $10,000<\/a> less or roughly $3200 per month.<\/p>Try using the Elder Index<\/a><\/strong> if you want to determine monthly and annual expenses in up to four counties based on household size (single vs. couple), location, housing status (renter, mortgage, no mortgage), and health status (excellent, good, poor).<\/p>Many experts advise that you create an overall financial plan and budget over the course of the five years<\/a> prior to your retirement from full-time employment.\u00a0 In addition to consulting your own financial planner, there are some retirement planners\/calculators available online for free or a subscription fee:<\/p>- AARP Social Security Calculator<\/a>\u00a0<\/li>
- Bankrate Retirement Calculator<\/a><\/li>
- Market Watch Retirement Planner<\/a><\/li>
- MaxiFi Planner<\/a><\/li>
- Nerdwallet Retirement Calculator<\/a><\/li>
- NewRetirement Planner and Retirement Calculators<\/a><\/li>
- Open Social Security<\/a><\/li>
- Social Security Administration’s List of Online Benefits Calculators<\/a><\/li>
- The Fidelity Retirement Score<\/a><\/li>
- T. \u00a0Rowe Price Retirement Income Calculator<\/a><\/li>
- Vanguard Retirement Income Calculator<\/a><\/li><\/ul>
For a helpful discussion of the taxes owed by U.S. retirees, see this article<\/a> from the Center for Retirement Research at Boston College and other articles under the BUDGET <\/strong>section<\/a> below.<\/p>- Housing<\/strong><\/li><\/ul>
For most people over the age of 50 in the United States, housing is one of their <\/span>largest expenses<\/span><\/a> accounting for 45-46% of total expenditures in 2017.\u00a0 \u00a0By age 65, however, 72% of homeowners<\/a> are likely to own their home without a mortgage and have more than $200,000 in equity.\u00a0<\/span><\/p>- Transportation, Food, and Health Care<\/strong><\/li><\/ul>
After housing, the second-largest expense for U.S. adults over age 50 is transportation which, combined with food and health care costs, accounted for 32-33% of their expenses in 2017<\/a>.\u00a0 Note that any budget should also account for out-of-pocket health care costs.\u00a0 Assuming that you retire at 65 and are eligible for Medicare, men are expected to <\/span>need another $133,000 to cover out-of-pocket <\/span>health care costs throughout retirement<\/span><\/a> while women will need $147,000 because they are expected to live longer.\u00a0 If you retire before age 65, you should research the options available to bridge the gap<\/a> to Medicare eligibility because even those with some form of health care coverage may be forced to pay significant premiums out of their savings.<\/span><\/p>- Travel<\/strong><\/li><\/ul>
For some retirees, travel could become a significant expense (averaging $11,077 a year<\/a>) that should be budgeted.\u00a0 \u00a0According to the U.S. Bureau of Labor Statistics’ Consumer Expenditure Interview Survey<\/a>, average travel expenditures on domestic and international trips were $583 and $3273, respectively, in 2013.<\/p>Begin the research process by identifying and prioritizing<\/a> those trips that are physically demanding and pursue senior discounts<\/a> to maximize the budget.\u00a0 The Senior List<\/a>, DealNews<\/a>, and Second Wind Movement<\/a> have updated lists of senior discounts that should get you started.<\/p>- Caregivers<\/strong><\/li><\/ul>
Finally, your budget should also factor in the funds necessary in the event that you need to pay for additional caregivers.\u00a0 Consult the following websites to estimate those costs:<\/p>
- Senior Living<\/a><\/li>
- Genworth Cost of Care Survey Tool<\/a> (provides costs of in-home, community and assisted living, and nursing home care by city, state, or zip code; compares costs in two locations; and predicts future costs)<\/li>
- Paying For Seniorcare<\/a><\/li>
- MarketWatch<\/a><\/li>
- A Place for Mom’s Elder Card Costs Comparison<\/a><\/li><\/ul>
Note that general articles on caring for aging family members can be found on the HOME-DO<\/strong> page under the Caring for Aging Family Member<\/strong><\/a> tab.<\/p><\/div>DOWNSIZING OR RIGHTSIZING<\/strong><\/p>If your current home has many empty rooms gathering dust, you need to consider whether you can and should downsize in your current location or elsewhere.\u00a0 There are a few books about downsizing that might help you plan your purge:<\/p>
- Downsizing The Family Home:\u00a0<\/span><\/a> What to Save, What to Let Go<\/span><\/a><\/li>
- Downsizing the Family Home:\u00a0 A Workbook: What to Save, What to Let Go<\/span><\/a><\/li>
- Let It Go:\u00a0 Downsizing Your Way to a Richer, Happier Life<\/span><\/a><\/li>
- The Ultimate Guide to Downsizing: Downsize Your Life to Upsize Your Lifestyle<\/a><\/li><\/ul>
If you can’t handle it on your own, there are companies<\/a> that specialize in helping you downsize or sell items that you no longer want:<\/p>- National Association of Senior Move Managers<\/a><\/li>
- Caring Transitions<\/a><\/li>
- decluttr<\/a><\/li><\/ul>
Try using the calculator at SquaredAway.bc.edu<\/a> to see how much money you will save by moving.<\/p>If you have always loved your house and can maintain the property (and don’t need access to the equity to fund your retirement), then downsizing may not be part of your plans.\u00a0 In fact, 49% of retirees surveyed<\/a> did not downsize in their last move, and 30% moved into a larger home to accommodate visitors or elderly parents\/boomerang adult children.<\/p>For a discussion of when to move after 50, see Should I Stay or Should I Go Now?\u00a0 A Quiz To Help You Decide When to Move After 50<\/a>.<\/p>AGING AT HOME<\/b><\/p>
It might come as a shock to some, but the vast majority of retirees these days do not plan to leave their state.\u00a0 Nor do they plan to live in age-restricted retirement communities.\u00a0 Instead, the number one choice for retirees’ long-term care is to age in place<\/a> in their own homes.\u00a0 For resources to support aging at home, see the following websites:<\/p>- Resources to Support Aging at Home<\/a><\/li>
- Aging-In-Place Remodeling Checklist<\/a><\/li>
- HomeFit Guide<\/a><\/li>
- Fall-Proofing Your Home<\/a><\/li>
- Preventing Falls in Older Adults<\/a><\/li>
- Prevent Falls and Fractures<\/a><\/li><\/ul>
RENTING OR BUYING<\/strong><\/p>If you decide against aging in place, the next decision that you’ll face is whether to rent or buy your next home.\u00a0 There are a number of factors to consider, but experts generally agree that it makes sense to rent first unless you know that you want to stay in a particular home for more than three<\/a> to five<\/a> years in order to justify the costs of moving.<\/p>Renting is also advisable if you are adjusting to a new retirement lifestyle or are planning to move to a new area because you might need more time to commit.\u00a0 In addition to giving you added flexibility, renting is a good idea if the rent is significantly cheaper<\/a> than your current housing costs after factoring in<\/a> (1) a 3% annual rent increase, (2) 1-2% homeowner maintenance costs, and (3) rising property taxes and homeowner insurance costs.<\/p>TYPE OF HOME<\/strong><\/p>Before you start your search, you might want to consider the pros and cons of living in a detached single-family home, a zero-lot-line home, an apartment, a townhouse, or a condominium.<\/p>
TYPE OF COMMUNITY<\/strong><\/p>- Retirement Communities<\/strong><\/li><\/ul><\/li><\/ul><\/li><\/ul>
If you decide to move, you should also consider whether you would like to live in a senior living community<\/a> that focuses on independent living or assisted living.\u00a0\u00a0See SeniorLiving.org<\/a>\u2019s interactive graph to get an idea of how the different types of senior care overlap and the relationship between the level of care and cost.<\/p>Note that the average monthly charge at continuing care retirement communities (CCRCs)<\/a> was $3555 in late 2021 (with rents typically rising about 2 percent a year), and the average entrance fee payment was $402,000 (but could range from $40,000 to over $2 million).\u00a0 The Commission on Accreditation of Rehabilitation Facilities offers a Consumer Guide to Life Plan Communities: Quality and Financial Viability<\/a> to help you make those important financial decisions.<\/p>- Cohousing Communities<\/strong><\/li><\/ul><\/li><\/ul><\/li><\/ul>
Some seniors choose to live in cohousing communities, which are “neighborhoods designed for community interaction and personal privacy<\/a>.”\u00a0Cohousing communities bridge the gap between aging in place and living in a big retirement community that is planned and managed by a developer<\/a>.\u00a0\u00a0See The Cohousing Association of the United States’ website<\/a> for a directory of senior communities or multigenerational communities that include seniors.\u00a0 You can find articles on the cohousing trend under the housing category<\/a> at the bottom of this page.<\/p>- Coliving\/Homesharing<\/strong><\/li><\/ul><\/li><\/ul><\/li><\/ul>
If you are single, you might want to consider if you’d be a good fit for a coliving<\/a> or homesharing arrangement using the following resources:<\/p>- Homeshare International<\/a><\/li>
- National Shared Housing Resource Center<\/a><\/li>
- Nesterly<\/a><\/li>
- Silvernest<\/a><\/li><\/ul>
HOME-FREE NOMADIC LIVING<\/strong><\/p>Some spirited seniors eschew the idea of being tied down to another permanent home.\u00a0 Instead, they sell their home and use the money that they would have spent on housing to travel the world and live in short-term rentals found on HomeAway<\/a> or VRBO<\/a>.\u00a0 \u00a0Whether this sort of lifestyle would work for you in the long- or short-term will depend on your budget, your flexibility, and your planning.\u00a0 Note that Medicare does not cover health care overseas<\/a>, so additional health insurance for medical and dental treatment and evacuation to the United States would be prudent.<\/p><\/div>HOUSING + CARE WEBSITES<\/strong><\/p>Although there are a number of general real estate search engines that you can use to identify properties to buy or rent, the following websites provide search engines or referral services for those age 50+.<\/p>
- After 55<\/strong><\/li><\/ul>
AVERAGE EXPENSES<\/strong><\/p> Most of the retirement resources available focus on one thing (money) for a very good reason.\u00a0 For most people, the decision to retire from full-time employment must be made carefully and deliberately so that housing, health care, and other living\/travel expenses will fit within the budget that might be expected to last for 30 or more years<\/a>, depending on your age.<\/p> Households run by adults 65 and older generally spend an average<\/a> of $48,872<\/a> per year or roughly $4100 per month.\u00a0 If you are single, however, your spending could be closer to $10,000<\/a> less or roughly $3200 per month.<\/p> Try using the Elder Index<\/a><\/strong> if you want to determine monthly and annual expenses in up to four counties based on household size (single vs. couple), location, housing status (renter, mortgage, no mortgage), and health status (excellent, good, poor).<\/p> Many experts advise that you create an overall financial plan and budget over the course of the five years<\/a> prior to your retirement from full-time employment.\u00a0 In addition to consulting your own financial planner, there are some retirement planners\/calculators available online for free or a subscription fee:<\/p> For a helpful discussion of the taxes owed by U.S. retirees, see this article<\/a> from the Center for Retirement Research at Boston College and other articles under the BUDGET <\/strong>section<\/a> below.<\/p> For most people over the age of 50 in the United States, housing is one of their <\/span>largest expenses<\/span><\/a> accounting for 45-46% of total expenditures in 2017.\u00a0 \u00a0By age 65, however, 72% of homeowners<\/a> are likely to own their home without a mortgage and have more than $200,000 in equity.\u00a0<\/span><\/p> After housing, the second-largest expense for U.S. adults over age 50 is transportation which, combined with food and health care costs, accounted for 32-33% of their expenses in 2017<\/a>.\u00a0 Note that any budget should also account for out-of-pocket health care costs.\u00a0 Assuming that you retire at 65 and are eligible for Medicare, men are expected to <\/span>need another $133,000 to cover out-of-pocket <\/span>health care costs throughout retirement<\/span><\/a> while women will need $147,000 because they are expected to live longer.\u00a0 If you retire before age 65, you should research the options available to bridge the gap<\/a> to Medicare eligibility because even those with some form of health care coverage may be forced to pay significant premiums out of their savings.<\/span><\/p> For some retirees, travel could become a significant expense (averaging $11,077 a year<\/a>) that should be budgeted.\u00a0 \u00a0According to the U.S. Bureau of Labor Statistics’ Consumer Expenditure Interview Survey<\/a>, average travel expenditures on domestic and international trips were $583 and $3273, respectively, in 2013.<\/p> Begin the research process by identifying and prioritizing<\/a> those trips that are physically demanding and pursue senior discounts<\/a> to maximize the budget.\u00a0 The Senior List<\/a>, DealNews<\/a>, and Second Wind Movement<\/a> have updated lists of senior discounts that should get you started.<\/p> Finally, your budget should also factor in the funds necessary in the event that you need to pay for additional caregivers.\u00a0 Consult the following websites to estimate those costs:<\/p> Note that general articles on caring for aging family members can be found on the HOME-DO<\/strong> page under the Caring for Aging Family Member<\/strong><\/a> tab.<\/p><\/div> DOWNSIZING OR RIGHTSIZING<\/strong><\/p> If your current home has many empty rooms gathering dust, you need to consider whether you can and should downsize in your current location or elsewhere.\u00a0 There are a few books about downsizing that might help you plan your purge:<\/p> If you can’t handle it on your own, there are companies<\/a> that specialize in helping you downsize or sell items that you no longer want:<\/p> Try using the calculator at SquaredAway.bc.edu<\/a> to see how much money you will save by moving.<\/p> If you have always loved your house and can maintain the property (and don’t need access to the equity to fund your retirement), then downsizing may not be part of your plans.\u00a0 In fact, 49% of retirees surveyed<\/a> did not downsize in their last move, and 30% moved into a larger home to accommodate visitors or elderly parents\/boomerang adult children.<\/p> For a discussion of when to move after 50, see Should I Stay or Should I Go Now?\u00a0 A Quiz To Help You Decide When to Move After 50<\/a>.<\/p> AGING AT HOME<\/b><\/p> It might come as a shock to some, but the vast majority of retirees these days do not plan to leave their state.\u00a0 Nor do they plan to live in age-restricted retirement communities.\u00a0 Instead, the number one choice for retirees’ long-term care is to age in place<\/a> in their own homes.\u00a0 For resources to support aging at home, see the following websites:<\/p> RENTING OR BUYING<\/strong><\/p> If you decide against aging in place, the next decision that you’ll face is whether to rent or buy your next home.\u00a0 There are a number of factors to consider, but experts generally agree that it makes sense to rent first unless you know that you want to stay in a particular home for more than three<\/a> to five<\/a> years in order to justify the costs of moving.<\/p> Renting is also advisable if you are adjusting to a new retirement lifestyle or are planning to move to a new area because you might need more time to commit.\u00a0 In addition to giving you added flexibility, renting is a good idea if the rent is significantly cheaper<\/a> than your current housing costs after factoring in<\/a> (1) a 3% annual rent increase, (2) 1-2% homeowner maintenance costs, and (3) rising property taxes and homeowner insurance costs.<\/p> TYPE OF HOME<\/strong><\/p> Before you start your search, you might want to consider the pros and cons of living in a detached single-family home, a zero-lot-line home, an apartment, a townhouse, or a condominium.<\/p> TYPE OF COMMUNITY<\/strong><\/p> If you decide to move, you should also consider whether you would like to live in a senior living community<\/a> that focuses on independent living or assisted living.\u00a0\u00a0See SeniorLiving.org<\/a>\u2019s interactive graph to get an idea of how the different types of senior care overlap and the relationship between the level of care and cost.<\/p> Note that the average monthly charge at continuing care retirement communities (CCRCs)<\/a> was $3555 in late 2021 (with rents typically rising about 2 percent a year), and the average entrance fee payment was $402,000 (but could range from $40,000 to over $2 million).\u00a0 The Commission on Accreditation of Rehabilitation Facilities offers a Consumer Guide to Life Plan Communities: Quality and Financial Viability<\/a> to help you make those important financial decisions.<\/p> Some seniors choose to live in cohousing communities, which are “neighborhoods designed for community interaction and personal privacy<\/a>.”\u00a0Cohousing communities bridge the gap between aging in place and living in a big retirement community that is planned and managed by a developer<\/a>.\u00a0\u00a0See The Cohousing Association of the United States’ website<\/a> for a directory of senior communities or multigenerational communities that include seniors.\u00a0 You can find articles on the cohousing trend under the housing category<\/a> at the bottom of this page.<\/p> If you are single, you might want to consider if you’d be a good fit for a coliving<\/a> or homesharing arrangement using the following resources:<\/p> HOME-FREE NOMADIC LIVING<\/strong><\/p> Some spirited seniors eschew the idea of being tied down to another permanent home.\u00a0 Instead, they sell their home and use the money that they would have spent on housing to travel the world and live in short-term rentals found on HomeAway<\/a> or VRBO<\/a>.\u00a0 \u00a0Whether this sort of lifestyle would work for you in the long- or short-term will depend on your budget, your flexibility, and your planning.\u00a0 Note that Medicare does not cover health care overseas<\/a>, so additional health insurance for medical and dental treatment and evacuation to the United States would be prudent.<\/p><\/div> HOUSING + CARE WEBSITES<\/strong><\/p> Although there are a number of general real estate search engines that you can use to identify properties to buy or rent, the following websites provide search engines or referral services for those age 50+.<\/p>