Retirement is a massive milestone to celebrate.

But we're sure you've seen plenty of articles describing health care costs, housing, and daily life when you retire.

It's almost like you spend so much time accumulating wealth that when it's time to spend it, you're not sure if you have enough.

But that's okay because if you're reading this, you're off to a great start.

As you continue to save diligently, let's break down some of the top retirement costs. This way, you'll be ready to set more specific goals – and you can definitely achieve them.

Health Care in Retirement

This is one of the most famous and expensive costs associated with your golden years. Here are a couple of quick facts:

• A medium-tier long-term care facility can cost over $100,000 annually.
• The average retired couple may need over $315,000 after tax to cover their health care expenses.

To get ahead of these costs, you should do your best to:

• Have Medigap coverage
• Secure Medicare coverage
• Use Health Savings Accounts (HSAs)
• Focus on preventative care

Combining these proactive strategies will make a strong impact and help you prepare for retirement.

Housing: A Staple of American Life

Housing is a cornerstone of financial confidence in retirement. Although almost 80% of retirees own their homes outright, housing costs can still take a big bite out of your cash if you're not paying attention.

Due to property taxes, utilities, and repairs, your housing costs might be more than you anticipate. This is especially true for 20% of retirees renting or not owning their home.

You must budget carefully if you don't plan to own your home in retirement. Consider:

• Building a dividend portfolio that pays quarterly dividends to cover your housing costs
• Assigning a specific income source to cover housing expenses

Daily Living Expenses and Charting Your Course

Your daily living expenses should be fairly predictable by the time you retire. You'll have a good handle on grocery costs, utility bills, and other regular expenses. The key is to make the most of every dollar:

• Buy in bulk when it makes sense
• Take advantage of senior discounts and AARP rewards programs
• Invest your money wisely so it's working for you, not just sitting idle

As you develop your retirement plan, define success for yourself. Be realistic—a $3 million portfolio requires different planning than a $5 million goal. Set strong, achievable goals that may not be easy but can be reached with diligence and hard work.

Here's a practical exercise:

Want to know how long it takes your money to double? Use the Rule of 72. Divide 72 by your target rate of return on your investment. For example:

• At a 1% return, it takes 72 years for your money to double (72 ÷ 1 = 72)
• At a more stock market-friendly 10% return, it takes just 7.2 years (72 ÷ 10 = 7.2)

This simple calculation can help you plan your investments and understand the power of higher returns over time. It illustrates why investing for growth can significantly impact your retirement savings, potentially allowing you to reach your goals faster or with less out-of-pocket saving.

Remember, the choices you make today about spending, saving, and investing can dramatically affect your financial comfort in retirement. Stay focused on your goals, make informed decisions, and let the power of compound growth work in your favor.

Get Ready for Retirement with Savvly

Finally, consider working with Savvly. We're the world's first market-driven pension designed to give you easy, affordable financial security for life – at a fraction of the cost of an annuity. Our new solution offers long-term income when you need it most.

With Savvly, you can have peace of mind knowing you've got an additional income stream coming in during the decumulation phase of life. The best part? It can offer market returns plus an additional long-life bonus, made possible by partially giving up some investment liquidity.

Don't leave your retirement to chance. Discover how Savvly can complement your existing retirement strategy and provide the financial security you deserve. Your future self will thank you for taking this proactive step towards a more secure retirement.

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