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Retirement Tips You May Not Have Considered

As more people live well into their 80’s and 90’s, the concern over retirement funds continues to grow. Several decades of income need to be saved, and many people don’t know how to achieve their ultimate financial goals. Take a close look at these retirement tips you may not have considered.

Take Advantage of “Catch-up Provisions”

Saving for retirement is usually limited to IRAs, 401(k)s and other investments. Because of their tax deductible nature there are contribution limitations to these funds, however, so saving up a large amount can be difficult. Take advantage of perks offered to 50-year-old people, such as catch-up deposits on IRAs. The annual contribution limit for 2015, 2016 and 2017 is $5,500, or $6,500 if you’re age 50 or older. So those over 50 can contribute $1000 more money to their accounts. You’ll be able to use this money as soon as retirement starts.

Be Realistic

Many retirees have financial goals that are unrealistic and may not be achieved by retirement. They want a property to be paid off, student-loan payback completed, and other milestones. Some advisers estimate that you’ll need  about 70 percent of your working income in retirement. In reality, you’ll probably need more if you don’t want to sit around all day. So, you may want to pad this value by 10 percent or more if you want to travel too. Be practical about your future expenses so that you don’t break the bank while trying to afford all of your necessities.

Price and Reserve Nursing-Care Facilities

Although you may be incredibly healthy now, the retirement years often bring on declining health. Be prepared without breaking the bank by planning for nursing-home care. Professionals, like those at The Scottish Home, know that you can save some money by reserving a facility many years before it’s even necessary. Be aware that you may need this type of care at some point. Planning and budgeting for it can save your investments as well as offering peace of mind to your family members.

Examine Long-Term Care Policies

You might think of life insurance as a payment toward your family when you pass on, and this can be a good way to provide for your family. But long-term care policies provide for you if you become unable to care for yourself. Although each policy has different requirements, according to Federal LTC here is what you have to do to qualify for Long-term care Benefits:


  1. you are unable to perform, without substantial assistance from another person, at least two activities of daily living for an expected period of at least 90 days due to a loss of functional capacity; or.
  2. you require substantial supervision due to your severe cognitive impairment.

“Activities of Daily Living” include:

  • Bathing:
    • getting into a tub or shower; and
    • getting out of a tub or shower; and
    • washing your body in a tub, shower or by sponge bath; and
    • washing your hair in a tub, shower or sink.

    (If you need substantial assistance from another person to complete any one of these activities, you are dependent for bathing);

  • Dressing:
    • putting on or (taking off) any necessary item of clothing (including undergarments) and any necessary braces, fasteners or artificial limbs;

    (If you need substantial assistance from another person to complete any one of these activities, you are dependent for dressing);

  • Transferring:
    • getting into (or out of)  a bed, chair or wheelchair

    (If you need substantial assistance from another person to complete any one of these activities, you are dependent for transferring);

  • Toileting:
    • getting to and from the toilet; and
    • getting on and off the toilet; and
    • performing associated personal hygiene.

    (If you need substantial assistance from another person to complete any one of these activities, you are dependent for toileting);

  • Continence:
    • maintaining control of bowel and bladder function; or
    • when unable to maintain control of bowel or bladder function, performing associated personal hygiene (including caring for catheter or colostomy bag).

    (If you cannot maintain control of bowel or bladder function and in addition you need substantial assistance from another person to perform the associated personal hygiene, you are dependent for continence);

  • Eating:
    • feeding yourself by getting food into your mouth from a container (such as a plate or cup), including use of utensils when appropriate (such as a spoon or fork); or
    • when unable to feed yourself from a container, feeding yourself by a feeding tube or intravenously.


So there are two different issues being unable to perform any two of the above activities and having this problem for more than 90 days. This means that you still have to cover the costs for the first 90 days yourself so it is important that you have funds in reserve for this possibility even if you have long-term care insurance.