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Budgeting for Longevity

It's important to start your retirement with a spending plan that works for you and match your essential expenses to guaranteed sources of income.

Fidelity recommends that making a budget may not be the first thing you look forward to in retirement, but it's one of the most important things to do to start your retirement on the right path.

To start, tabulate your average monthly expenses like cable, telephone, and electric bills and know how much money is coming in versus going out and identify your ongoing monthly bills and determine whether you need to continue all these services.

Your essentials are health care, housing, transportation, and food which are your budget priorities. Planning for health care costs can be especially daunting with estimated costs for an average 65-year-old couple retiring in 2019 hitting a total of $285,000 (in today's dollars) over their entire retirement period.

The question is: How Are You Planning to Age?

Your ability to maintain and sustain an independent lifestyle compared to requiring daily care can save your thousands of dollar per month. Many people invest in a long-termcare insurance plan to ensure they have the finances to pay for assisted living care, however they fail to plan for staying independent.

Failing to plan for independence can cost seniors $60,000 to $114,000 or more per year.

Longterm Care or Independence and Longevity?

Assisted living facilities in the Portland metropolitan area charge $4,800 to $6,600 or more per month depending on location and amenities, and between $9,186 and $9,529 per month for a skilled nursing facilities, compared to hiring a qualified personal trainer, health coach or even private physical therapist who comes to your home two to three times per week for only $700 to $1400 per month to keep you strong and independent, and slow down functional declines. You can do the math of how much stays in your pocket, not to mention the enjoyment of having your independence which is priceless.

Budgeting for longevity includes budgeting for services that help you stay independent such as personal training, health coaching or physical therapy to receive age-and function-appropriate exercise, and healthy nutrient-rich foods that prevent disease and your boost immune system. Planning for independence also includes compressing the time that personal assistance in activities of daily living are needed during unexpected events or towards the end of life.

Independence and longevity do not just happen, they require a planning.


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