Healthcare costs and length of life – be sure you have thought long and hard about these two very real issues facing current and future retirees. People are living longer than they ever have before and with the cost of healthcare around $1,200-$1,800 a month, retiring early may be much trickier than you may have ever thought.
If you want to retire prior to 65, when you are eligible for Medicare, healthcare costs will be your biggest challenge that can devour your savings. Coupled with this issue is considering how long you may live after retiring. Can you set aside $20,000 annually from your retirement fund just to healthcare? Ouch, right?! Without these expenses accounted for in your plan, your early retirement will veer off-course like a speeding bullet.
The rising cost of college for your kids, upgrades to your current home or perhaps moving to a larger home during your 50s could side-track an early retirement. Don’t wait. Hatch and start executing your financial plan now to ensure your funds last.