As you plan for retirement, you might find yourself tossing at turning at night. You’ve heard that Medicare and Social Security budgets are tight. Your neighbor down the street lost a chunk of money in the stock market. Your brother retired last year, and he regrets it. Whatever your worries, they’re all understandable. Retirement planning is a difficult maze to navigate.
On the other hand, we don’t want you to worry so much that your fears overwhelm you. It’s very likely that you’re actually doing better than you think, and at least one or two of the following situations probably applies to you.
You have a great credit score. A high score means lower interest rates on things like car loans, which can save you thousands of dollars. Then there are those credit card perks, like cash back on your balances and free airline miles. All of that adds up to a considerable benefit, that you earned yourself by protecting your credit history.
Healthcare. We don’t often think of our healthcare benefits until we actually go to the doctor and use them. But since healthcare is one of the largest expenses you will face in retirement, those of you with an employer-provided healthcare package will save thousands if you decide to retire before age 65, when you’re eligible for Medicare. Speaking of Medicare, without it, many retirees would exhaust their retirement funds within a few years of retiring. Sure, premiums have increased a bit in recent years, but it’s still a drop in the bucket compared to the value of coverage offered.
Social Security. Due to negative news reports on the solvency of the system, we tend not to think of Social Security as a source of great wealth. But in order to draw the amount of income received by the average Social Security beneficiary, you would have to purchase an annuity worth hundreds of thousands of dollars (or otherwise save an enormous sum of money). That kind of puts it into perspective, doesn’t it?
Employer benefits. Many people have to purchase life insurance and disability insurance policies, and they pay those premiums every month. When your employer provides these benefits, you might not think much about them. But you’re lucky to have the valuable policies in place, just in case you ever need them. And you’re saving a chunk of money each month if your employer pays the premiums.
Are you feeling a little more secure yet? Hopefully, you’ve realized that you’re wealthier than you think! But of course, you should continue to plan and save faithfully for retirement. Give us a call, and we’ll help you review your retirement plan. Regular consultations will help you stay on course toward a more stable retirement.
Portions of this article have been excerpted from “6 ways you’re wealthier than you realize” by Geoff Williams, who is not affiliated with LPL Financial.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.