It is important to think long and hard about your retirement years when you are creating a financial plan. When you are younger, it can be hard to envision a time when you won’t enjoy working, but things can change as your senior year start to come into focus.
Some people are overconfident because they expect Social Security to be enough to live on when they decide to put their working years behind them. Your highest 35 earning years are used to determine your Social Security benefit. When you look at the facts, you see that Social Security benefits are actually quite modest.
If you want to find out what you can expect to receive based on your work history, you can register your account on the Social Security Administration website. You should not hesitate to do so if you are interested because it is a very quick and easy process.
The exact eligibility age for your full benefit depends on the year of your birth, but it will be somewhere between 66 and 67 as the laws currently stand. It is possible to accept a reduced benefit when you are as young as 62, but you would receive between 25 percent and 30 percent less than you would have gotten if you would have waited until you were eligible for your full benefit.
In 2016, the average benefit for a single Social Security recipient is just $1341, and the average for a couple when both people are receiving benefits is $2212. The maximum benefit for an individual is $2639 so even if you are a high income earner, Social Security benefits are not going to support the retirement lifestyle that most of us envision.
It takes careful advance planning to develop the resources that you need to supplement your Social Security benefit so that you can live comfortably during your golden years.
Retirement in Ashland
There are economic incentives that lure people to certain retirement destinations, and there can also be incentives to stay put if your hometown is a good place to retire.
We have offices in Ashland Kentucky, and Charlotte, North Carolina. Both places have appeal to retirees for various reasons, but we are going to focus on Ashland here.
You may want to downsize during your senior years so the cost of real estate is certainly going to be a big factor to take into consideration. If you are on a fixed income, you want to keep your monthly mortgage costs as low as you can without sacrificing your quality of life.
Ashland is very alluring on that level. According to City-Data.com, in 2013, the median housing or condominium value in Ashland was $91,378. For freestanding houses, you are looking at a median cost of just under $119,000. Property taxes are relatively low so you have the best of all possible worlds when it comes to putting a roof over your head during your retirement years.
Speaking of taxes, the state of Kentucky is favorable for retirees. There is no state-level estate tax in Kentucky, and Social Security benefits are not taxed. There is an inheritance tax, but close relatives who would typically be inheritors are exempt. These would include your parents, your children, your surviving spouse, your grandchildren, and your siblings.
Crime is also going to be a factor for people who are looking for a place to retire, and the crime index in Ashland is lower than the national average.
Senior citizens should certainly be concerned about health care services, and Ashland has you covered on that level as well. There are two hospitals, a hospice, two home health centers, and four nursing homes.
When it comes to services and leisure and recreational activities, you have to understand the fact that Ashland does not stand alone. It is part of the Huntington-Ashland-Ironton metropolitan area that has a population of over 300,000 people, though Ashland maintains that comforting small town feel as a town with just over 21,000 residents.
Retirement Planning Consultation
If you are a resident of the greater Ashland area and you are concerned about your retirement years, we would be glad to discuss your situation with you in person. The active retirement years are certainly part of the equation, but you should also prepare for the expenses that you may incur at the end of your life.
Most seniors require long-term care eventually, and many reside in nursing homes. These facilities are very expensive so you have to brace yourself if you want to be able to leave a legacy to your loved ones.
To set up a consultation, send us a message through our contact page or call us at (606) 324-5516.