Yes, saving for retirement and planning for income is important but so is planning for the unexpected. It is incredibly easy to get caught up in the present and not think about how much one needs to take care of themselves in the future. This is why retirement planning is more about planning for all aspects of your retirement years and not just about income.
As one ages, the amount that they have to spend to take care of themselves will likely increase. For those entering the old age, these payments tend to be significantly more. Medical bills and housing costs increase with time. In short, everything becomes more expensive over time, and your earnings in the present need to be able to take care of your needs in the future.
Doing the math and figuring just how much you can save for the future is essential, even as one starts their career. People who are in well-paying jobs and who are more than well situated for their futures to decide to start planning early to take care of their lives in advance. To understand the importance of planning early, here are some of the prominent statistics that have been derived after a thorough analysis of the earnings that people have and the costs associated with them as a result of their savings.
- 52% of the total population above the age of 65 are in need of specific resources that can aid them with their medical bills and additional care. As a person ages, they tend to encounter a lot more health problems than those who are younger and healthier. This means that when planning for one’s future, they have to take into account certain costs that are associated with medical bills and care costs.
- 14% of the total population need long-term care for more than five years. This again is because of the prevalent health issues that people within this category tend to face. Persistent health issues and conditions often need a lot more tending to, especially in the later stages of one’s life, and planning for this future is incredibly important for anyone who wants to get treated for their conditions.
- 10% of Americans over the age of 65 have developed some form of neurological disorders, or have been diagnosed with Alzheimer’s or Parkinson’s. These are disorders in which individuals need round-the-clock care, and a lot of treatments to get better. Since these aren’t cheap by any means, paying for them can burn one’s pocket rather easily.
- 57.5% of the population who are above the age of 65 years tend to spend around $250,000 on long-term care. As the number of disorders that people face tends to increase, the expenditure on medical costs also tends to go up. Americans generally spend incredible amounts on health care, and these costs are only going to grow over the next few years.
- 3.8% is the amount of inflation that nursing rooms tend to experience every five years. This means that over the years, the amount that one is going to need to spend on a simple room to take care of themselves is only going to increase. Since these become a necessity in many instances, it becomes important for an individual to plan properly for the future.
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