Smart Financial Moves to Make in Your 60s and Beyond
Summary
Your 60s & beyond come with a lot of changes, but there’s still time for saving & investing. Check tips for financial moves to make in your later years.
In this article:
If you’re in your 60s with retirement on the horizon, now’s the time to make some final financial decisions before hanging up the towel on full-time work.
Whether you’re planning for retirement at 60 or curious about investing after 70, use these tips to take the temperature of your financial wellness.
5 money moves to make later in life
Retirement is all about planning. Get honest with your wants, needs and nice-to-haves so you can adjust your plans before taking the next leap into wherever life's journey takes you.
Check in with your financial advisor regularly
Talk with a financial advisor to work out a master plan to meet your financial goals. If you don’t have one already, find someone with proven experience on how to plan for retirement at 60 or above.Continue to invest
Whether you’re nearing retirement or already in it, it’s important to manage investment risks in order to maintain your desired lifestyle.1 According to SRI research, 57% of all American workers expressed concern about outliving their assets in retirement.2 Consult with your financial advisor about setting aside reserve assets, diversifying your portfolio and taking calculated risks.3 These are all strategies worth exploring to help take the worry out of making your money last as long as possible.Switch to Medicare
If you’re turning 65 within the next 3 months or have a disability, you may be eligible for Medicare, which saves you money on health insurance costs.4 It’s important to account for out-of-pocket costs in your savings plan.5 On average, Medicare covers about two-thirds of the cost of health-care services, with out-of-pocket spending accounting for around 12%, while support from Veterans Affairs, Medicaid, Tricare, private insurance and other sources roughly make up the remaining 20%.6Reevaluate your living situation
From 2016 through 2020, Americans aged 65 and older spent an average of $16,880 annually, or $1,406.68 per month, on housing-related costs.7 Do you plan to downsize or move closer to family? Maybe you need a new roof or simply want to spend winter in a warmer climate. Take these factors into account when budgeting for future housing expenses.Be aware of loan scams aimed at older adults
Scammers often target seniors to exploit their savings with less likelihood of being reported.8 According to the Federal Trade Commission (FTC) Consumer Sentinel Network Data Book for 2021, people ages 20–29 are more likely to report losing money to fraud even though people 70+ report losing more money on average.9 Learn more about loan scams, how to spot and report them when they happen.
Safeguard your nest egg
By the time you’ve reached your 60s, you’ve worked hard to build a sturdy foundation for retirement. Now is the time to act on some solid investment strategies so you can put the finishing touches on your plan and enjoy your golden years.
1. Carson, Ron. “Nearing Retirement? Kick Your Financial Fears To The Curb.” forbes.com https://www.forbes.com/sites/rcarson/2021/07/19/nearing-retirement-kick-your-financial-fears-to-the-curb/?sh=62578f70183d (accessed August 11, 2021).
2. Secure Retirement Institute. “National Retirement Security Month Fact Sheet, 2021.” limra.com https://www.limra.com/siteassets/newsroom/fact-tank/fact-sheets/retirement-planning-fact-sheet.pdf (accessed August 16, 2022).
3. Anspach, Dana. “How to Manage Investment Risk in Retirement.” thebalance.com https://www.thebalance.com/retiree-manage-investment-risk-2388542 (accessed August 11, 2022).
4. Medicare. “Get started with Medicare” medicare.gov. https://www.medicare.gov/basics/get-started-with-medicare (accessed August 11, 2022).
5. Epperson, Sharon. “Americans can expect to pay a lot more for medical care in retirement.” cnbc.com. https://www.cnbc.com/2022/05/16/americans-can-expect-to-pay-a-lot-more-for-medical-care-in-retirement.html (accessed August 11, 2022).
6. Fronstin, Paul & VanDerhei, Jack. “Projected Savings Medicare Beneficiaries Need for Health Expenses Spike in 2021.” ebri.org. https://www.ebri.org/docs/default-source/ebri-issue-brief/ebri_ib_549_savingstargets-13jan22.pdf?sfvrsn=67983b2f_2 (accessed August 16, 2022).
7. Flannelly, Michael. “Typical Retirement Expenses to Prepare For.” sofi.com https://www.sofi.com/learn/content/typical-retirement-expenses (accessed August 11, 2022).
8. DeNicola, Louis. “Top 10 Scams Targeting Seniors.” experian.com. https://www.experian.com/blogs/ask-experian/top-scams-targeting-seniors (accessed August 11, 2022).
9. Federal Trade Commission. “Consumer Sentinel Network Data Book 2021.” ftc.gov. https://www.ftc.gov/reports/consumer-sentinel-network-data-book-2021 (accessed August 11, 2022).
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
