My Comments: Some of this seems counter intuitive but I can’t tell you how many times I’ve talked with people who have retired and seem unable to enjoy their lives. The six signs described below need to be focal points for most people when reaching age 60. By that time you probably know that at some point retirement will happen or you will have died before that time arrives.

It’s not necessary to follow every single penny you earn or expect to earn before retirement. But once you get there, if you want to relax and enjoy the rest of your years, it will help if you’ve set the stage for that to happen. Whether you’re a married couple at that point or for some reason find yourself as a single retiree, you really don’t want your life challenged daily by concerns about money.

Also, don’t let yourself get caught up in too much material like this article which is promoted by a bank that wants your business. There are ideas here you can take advantage of at no cost to you.

By Martin Dasko / 3 MAR 2024 / https://tinyurl.com/y392n7j2

Planning for retirement involves the meticulous breakdown of expenses and investments. A lot of research and planning goes into setting up your desired retirement lifestyle since it can be challenging to determine your life expectancy. Retirement planning can get overwhelming, especially if you’re worried about your finances. This is why we wanted to explore the signs that you’ll be able to enjoy a middle-class retirement without stressing about paying the bills in your golden years. 

Stable and Diverse Income Stream

“One of the hallmarks of a middle-class retirement is having stable and diverse income sources,” said Erika Kullberg, an attorney and personal finance expert, and founder of Erika.com. “This may include income from pensions, Social Security benefits, retirement accounts such as 401(k)s or IRAs, and other investments.”

The most important factor in enjoying a middle-class retirement is an adequate amount of income to cover your expenses. You’ll have an enjoyable retirement if you don’t have to constantly worry over how you’ll get by.

“Additionally, having multiple streams of income can provide a buffer against economic downturns and unexpected expenses,” Kullberg said.

As we’ve seen in recent years, external factors like inflation can bring up the cost-of-living expenses. This means you’ll want to diversify your income streams to have multiple sources to help you live your desired lifestyle.

Sufficient Retirement Savings

“If you’ve diligently contributed to retirement accounts throughout your working years and have accumulated a healthy nest egg, you’re likely on track,” Kullberg said. “Aim for a retirement savings goal that allows you to maintain your desired lifestyle without relying solely on Social Security benefits.”

While figuring out how much you need to save for retirement may be challenging, you want to take a realistic look at your expenses. You’ll also want to do whatever you can to contribute to your nest egg so that you can have the savings to get you through the rest of your life. You don’t want to rely on the limited income provided by Social Security benefits because that may not be enough to enjoy yourself. 

Debt Management and Mortgage Affordability

“If you’ve paid off high-interest debt, such as credit cards or personal loans, and have a manageable mortgage payment, you’re in a strong position,” Kullberg said. “Being debt-free or having minimal debt allows you to allocate more funds towards retirement savings and discretionary spending in retirement.”

If you can minimize your debt payments, you’ll have more resources to create your ideal retirement lifestyle. You don’t want to worry about debt payments because, with interest rate fluctuations, this could take a decent amount of your income. 

You also want to ensure that you have an affordable mortgage payment since your living expenses could take a large chunk of your monthly income. If you haven’t paid off your mortgage, you can look into selling your home to downsize so that you can add the funds to your retirement nest egg. 

Affordable Healthcare Coverage

“Access to affordable healthcare coverage is essential for maintaining good health and managing medical expenses in retirement,” Kullberg said. “If you have access to employer-sponsored retiree health benefits, Medicare coverage, or affordable private health insurance, you can feel confident about your ability to manage healthcare costs during retirement.”

To enjoy a middle-class retirement, you’ll need a plan for handling your future medical bills. Even though you may feel fairly healthy, you never know what can happen in the future. Being prepared for this is better so you’re not shocked when the medical bills arrive. 

Reasonable Cost of Living

“A middle-class retirement often involves living within your means and maintaining a reasonable cost of living,” according to Kullberg. “If your expenses are in line with your retirement income and you’re able to cover essential expenses such as housing, utilities, groceries, and transportation without financial strain, you’re on the right track.”

An enjoyable retirement doesn’t have to be expensive because you don’t want to run out of funds. You can relocate or downsize when you leave the workforce since you’re no longer tied to your job. You can also look into communities or parts of the country with a lower cost of living to help you save money on your expenses. 

Ability To Enjoy Leisure Activities

“Retirement is a time to enjoy leisure activities and pursue hobbies without financial worries,” Kullberg said. “If you have the financial means to travel, dine out, engage in recreational activities, and pursue your passions in retirement, you’re likely experiencing a middle-class retirement lifestyle.”

After working hard during your career and diligently putting the funds aside for your golden years, you’ll want to be confident to know that you can enjoy yourself. You don’t want to feel limited in your options when you have the free time to do as you please. If you can find hobbies that you look forward to and if you have the financial resources for leisurely activities, you’ll enjoy a middle-class retirement.