As the golden years draw closer many people may be wondering if they have planned properly for retirement, and experts say that one surefire way to help make this happen is to develop a spending outline, according to NASDAQ.
Some people may want to travel once they have ended their careers, while others may simply want to spend more time with their grandchildren, this is why a plan is crucial. The jet-setting travelers may need much more capital to fulfill their dreams than their homebound counterparts.
The amount of money one takes out of a savings plan will affect the amount of interest that money accrues. If these funds are diminished without a strong supplementary income, this could spell financial trouble down the road. Investing in a whole life insurance policy that will guarantee a cash value, in addition to a 401(k) and Social Security, could be that extra cushion that people need.
The U.S. Department of Labor and Statistics found that people over the age of 75 spend much less than younger retirees, possibly meaning that less money is needed when less activities are being done. However, experts warn that people should not assume they will need less money as they age because healthcare costs are constantly rising.