Financial Tips for Retiring When You Want, How You Want

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Retirement: a time for relaxation, travel and pursuing passions. But how do you ensure your finances allow you to retire on your terms? Here at Acts Retirement Life Communities, we understand the importance of financial security for a fulfilling retirement. This guide offers baby boomers valuable tips for maximizing their retirement savings and exploring how a Continuing Care Retirement Community (CCRC) can contribute to a more fulfilling future.

Review your contribution rate and consider increasing it gradually: Many employers offer matching contributions for your 401(k) — essentially free money! Aim to contribute enough to claim the full employer match. But don't stop there. Even small increases in your contribution percentage over time can significantly boost your retirement savings. For example, let's say you're currently contributing 6% of your salary to your 401(k) and your employer matches 50% of your contributions. If you increase your contribution by just 1% (to 7% of your salary), you'll see a 6% increase in your total contributions (your 1% increase plus the additional 0.5% match from your employer). Over time, this seemingly small increase can add up to a substantial amount of additional retirement savings.

Take advantage of catch-up contributions: If you're 50 or older, the IRS allows you to contribute additional funds to your 401(k) each year. This is a valuable opportunity to play catch-up if you haven't saved as much as you'd like or if you started saving later in your career.

Invest wisely based on your age and risk tolerance: As you approach retirement, you may want to gradually shift your 401(k) investments to a more conservative allocation. This can help protect your savings from market volatility while still providing some growth potential. Acts Retirement doesn't provide financial advice, but a financial planner can help you develop a personalized investment strategy that balances growth potential with income security, considering your age, risk tolerance and retirement timeline.

Click here to read financial planning advice for seniors.

Strategic claiming: Social Security benefits are based on your average indexed earnings throughout your working career. The longer you delay claiming your benefits, the higher your monthly payout will be. This can be a wise strategy, especially if you have other sources of retirement income to live on in the early years of your retirement.

For example, if you wait to claim your Social Security benefits until you reach your full retirement age (FRA), which is currently 66 or 67 depending on your birth year, you'll receive a higher monthly benefit compared to claiming early at age 62. This higher benefit amount will continue to grow slightly each year based on cost-of-living adjustments (COLAs). Delaying benefits can also be a good option if you expect to live a long life, as you'll receive a higher monthly payout for a longer period of time.

However, there isn't a one-size-fits-all answer to the question of when to claim Social Security benefits. The best time for you to claim will depend on your individual circumstances, including your health, your expected retirement expenses and whether you have a spouse who is also receiving Social Security benefits. The Social Security Administration offers online resources and retirement calculators to help you estimate your benefits at different claiming ages. You may also want to consult with a financial advisor to get personalized advice on the best claiming strategy for you.

Click here to learn more about applying and collecting social security.

CCRCs, Continuing Care Retirement Communities, offer a unique solution for managing retirement finances. By combining independent living, assisted living and skilled nursing care on one campus, CCRCs provide a comprehensive care plan that can significantly reduce your long-term health care costs. Here's how:

Predictable health care expenses: CCRC entrance fees often cover future long-term care needs, providing financial predictability and potentially reducing out-of-pocket medical expenses. This can be a significant advantage, as long-term care costs can be substantial and can quickly erode retirement savings.

Reduced housing costs: CCRC residents typically pay a monthly service fee that covers maintenance, utilities and some meals, simplifying budgeting and potentially lowering housing costs. Additionally, many CCRC campuses offer amenities like fitness centers, pools and housekeeping, reducing the need for external services that can add up over time.

Click here to read what do I need to retire comfortably?

Financial security is certainly a major concern for retirees, but it's not the whole picture. CCRCs offer a lifestyle that goes beyond just affordability. Here are some of the additional benefits:

Vibrant community: CCRCs foster a sense of belonging through social activities, clubs and events. This social interaction is essential for maintaining mental and emotional well-being throughout retirement.

Reduced stress and burden: Knowing that future healthcare needs are potentially covered within the CCRC campus provides peace of mind and reduces the burden of planning and managing complex medical care later in life.

Continued independence: CCRCs promote independent living for as long as possible. Residents can enjoy their own private apartments or villas, with access to support services as needed. This allows them to maintain their autonomy while having help readily available.

By following these tips and exploring a CCRC like Acts, you can create a personalized retirement plan that allows you to retire when you want, how you want. Acts communities offer a vibrant lifestyle with independent living options, social activities and access to necessary health care services. This combination helps residents not only enjoy an active and fulfilling retirement but also potentially reduces long-term health care costs, giving you peace of mind and more financial freedom to focus on what matters most in your later years.

To learn more about how independent living communities like Acts Retirement Communities can help you achieve your retirement goals, visit actsretirement.org to contact us today.

Remember, financial planning is essential. While we've provided general advice here, Acts Retirement doesn't offer financial guidance. We recommend consulting with a financial advisor to develop a personalized plan for your unique situation.

Want more information on retirement? Look to the experts. Visit actsretirement.org and find a library of valuable information in our resources section. Or click on either of the links below:

• Retirement is a long-term investment
• Retiring in 2024: Navigating New Horizons with Expert Trends, Tips, and Advice

By Acts Retirement-Life Communities

Acts Retirement-Life Communities is the largest not-for-profit owner, operator and developer of continuing care retirement communities in the United States. Headquartered in suburban Philadelphia, Acts has a family of 23 retirement communities that serve approximately 8,500 residents and employ 6,200 in Pennsylvania, Delaware, Maryland, North and South Carolina, Georgia, Alabama and Florida. For more information about Acts visit actsretirement.org.