How to Live a Regret-Free Retirement

November 20, 2017

Retirement is a time to enjoy your family and friends, travel, participate in your favorite hobbies or even just relax. For many, it’s also a time to look back and reflect on one’s life and career. Obviously, you’d probably like to look back on your life and the decisions you’ve made with fondness rather than regret.

For many retirees, though, it’s not until they stop working and reach their later years that they realize they should have made different choices, especially with regard to retirement planning. They may wish they had saved more money or paid down their debt. Or perhaps they think about the job they should have taken or the business they should have started.

If you’re approaching retirement, much of your savings and planning may be behind you. However, there are still steps you can take today to ensure that you won’t have financial regrets later in life.

Below are three planning tips to help you create a regret-free retirement. If you haven’t thought about these issues, now may be the time to do so.

Create a health care funding strategy.

According to Fidelity, the average 65-year-old couple will spend $260,000 on out-of-pocket health care expenses in retirement.1 That figure includes things like deductibles, copays, premiums and more.

Without a plan in place, those costs could consume a significant amount of your assets and income in retirement. Fortunately, you can take steps to manage those expenses. You could fund your health savings account (HSA) today so you’ll have tax-advantaged money to pay health care costs in the future. You also may want to focus on your diet and overall health to reduce your risk of injury or illness after you retire.

Address your long-term care needs.

According to the U.S. Department of Health and Human Services, nearly 70 percent of 65-year-olds will need long-term care at some point in their lives.2 That care could last for years and may cost a substantial amount.

Consider your potential long-term care needs now, while you still have planning options available. For instance, you may look at long-term care insurance, which allows you to pay premiums today in exchange for coverage in the future. Also, talk to your children and other family members about how they may be able to contribute if you need extended care.

Increase your sources of guaranteed income.*

If you’re like many retirees, you will have guaranteed income from Social Security and possibly a pension. However, you will have to rely on withdrawals from your personal savings to fund the remainder of your living expenses.

Relying on savings can be scary, because the income may not be guaranteed. However, you can look at ways to convert some of those savings into vehicles that offer guaranteed lifetime income. For instance, there are a number of different annuity products that offer guaranteed income streams. One type, the fixed indexed annuity, also offers growth opportunities with downside protection. Such a tool could help you manage risk and enjoy a dependable, predictable income stream.

Ready to plan your regret-free retirement? Contact us at Grand Canyon Planning Associates today. We welcome the opportunity to consult with you, examine your needs and goals, and help you develop and implement a plan. Let’s connect today.