Utah is home to some of the healthiest and long-lived retirees. Utahns have one of the highest life expectancy rates in the nation — and the long years can put stress on one’s retirement fund. With Social Security bound for a crisis in 2035, you should make plans for your retirement funds as early as possible.
Diversify Your Retirement Fund
Almost half of all retirees rely on Social Security for all or most of their expenses — but the situation can turn dire by 2035. Experts predict the financial reserves of the system will run out by then — and benefits would have to be reduced by 20-25 percent.
A couple of solutions you can consider are to put more on your 401K is a sound solution or consult a financial advisor in Utah on the proper way to invest your money. With life expectancy going up to the high 80s — you’ll need enough money to sustain a comfortable lifestyle for 15 years or more. Going by the three-point rule of pension, savings, and Social Security might not be enough to sustain you comfortably throughout your life. You might need additional forms of investment to sustain you through the years.
Obtain Additional Medicare Coverage
Medicare isn’t all-encompassing — it won’t pay for your medicines nor would it cover extended stays at the hospital or non-emergency procedures. Medicare A and B only cover medical emergencies, as well as medicine used during treatment. You can get additional Medicare coverage from private insurance (parts C and D) which would cover pharmaceutical drugs as well as treatments for vision and hearing loss. Most procedures to maintain quality of life are non-emergency, so original Medicare will not cover trips to an ophthalmologist/optometrist, laser-eye surgery, prescription glasses, hearing exams, hearing aids, trips to the dentist, and dentures. It also doesn’t cover long-term care — which is crucial in the late stages of your life.
Get Free Electricity with Solar Panels
Solar panels might seem like strange investments — but they’re practically free in Utah. The state’s elevation is exposed to a lot of sun and it’s own incentive programs make solar homes extremely attractive. Residential solar energy systems that can provide enough power to keep your utility bills at zero (usually an 8-kW system) will cost around $16,000-$18,000 — however federal incentives cut 26 percent of the cost and Utah’s solar initiative provides an additional $2,500 reduction. You’ll only end up paying $9,500-$11,000 — easily covered by the savings on your electric bill on a 10-year financial plan. Modern solar panels are extremely durable and are capable of maintaining optimum performance levels for 35-45 years (25 guaranteed). You’ll be paying with the savings on your electric bill for the first 10 years and you’ll have free electricity for the rest of your life.
There’s nothing more frightening than spending your final years without money. Investing in your retirement funds early will ensure it doesn’t dry up when you need it. Make every possible investment you can (as long as they’re sound) and do what you can to limit your spending in the years ahead.