How to Make a Plan for Retirement

A plan for retirement takes some hard work and research to make. Such a plan should consider all aspects of retirement. Finances are the first thing that should be considered. There are many options for financial security in retirement. Some of the most popular ones are investing in a 401(k) plan or taking out an annuity. A person should know exactly how much money he or she can count on for retirement. If the funds are not enough, it is usually better to either work part time or postpone retirement.


Retirement and Medical Treatment

A person who is making his or her plan for retirement should take medical treatment into consideration. Even a person who is generally healthy is likely to have medical problems as he or she gets older. Health insurance can help to offset the costs of medical bills, as can Social Security. A person making a plan for retirement should set aside a considerable amount of money for medical needs.

It has been estimated that a 65 year old individual will spend $100,000 for medical care over the course of 20 years, and this figure does not include dental work, over the counter medications or long term care.


Where Should a Retiree Live?

Choosing a place to retire is not easy. When making a plan for retirement, one should consider the cost of living in any given state or country. Hawaii, for instance, is a popular retirement destination but it also the most expensive state in the United States. Many retirees have found that retiring abroad is quite cheap, as medical care, housing, food and entertainment are all relatively inexpensive. However, those who have family in the United States may want to stay close to home.

Each person will need to take his or her particular circumstances into consideration when making a plan for retirement. There really is no one ‘right place’ to retire; each city, state and country has its advantages and disadvantages. A lot really depends on what a retiree wants to do. If a retiree is looking forward to spending a lot of time at a beach, then the Southern United States, Central America and Mexico are all good options. A retiree who enjoys indoor forms of entertainment will find that most any large city is a suitable retirement spot. Those who enjoy fishing and other outdoor pastimes may want to retire in South Carolina or Colorado.

One should also consider what type of housing he or she would like to have. There are many retirement homes that provide medical care, communal meals and plenty of entertainment.

A person can rent a room in such a home for a reasonable price and not have to worry about cooking, cleaning and driving. However, some retirees prefer to live in their own home, as it is more private.


When making a plan for retirement, one should consider all the options. A retiree will need to choose where to live based on his or her financial standing, but this is not the only factor to take into consideration. It is also important for a retiree to live near a good medical facility and have access to forms of entertainment that he or she enjoys.


Return to the Retirement Guide Page

Click here to Return from How to Make a Plan for Retirement to Cheapest Places to Retire

feed icon