Retirement is a big step in your life, so it is important to be well-informed on every aspect. Many people go into their retirement years thinking they know all the necessary information to help them through. Unfortunately, there is still a lot they find they find they wish they had known going into it.

Make sure you fully understand Social Security

Many people enter retirement not fully understanding how to maximize their Social Security benefits. It is important, however to understand these key points:

  • Most people will not be able to rely comfortably on Social Security alone to cover their expenses. It is only designed to be about 40% of an individual’s average working income.
  • Think about when you will want to use that money most. Most people’s expenses increase at the beginning of retirement and begin to taper off after fifteen to twenty years.

Know how different your income will be

It is a big transition to go from a steady working paycheck to a slower, fixed retirement income. Often, spending habits need to be closely watched and even changed. Ease into your retirement. Create a budget and do your best to stick to it.

Long-term care is very likely

More people are realizing that long-term care is a possibility for them and/or their loved ones. As a result, long-term care insurance policies are more commonly included in the average person’s plan for retirement. Here are some statistics about long-term care in America:

  • If you’re 65 or older, you have a 70 percent chance of needing some form of long-term care during your remaining years.
  • The average length of care needed for women is longer than that for men, at 3.7 years and 2.2 years, respectively.
  • 20 percent of seniors will need care for longer than 5 years.1

America is an expensive country for long-term care. It can therefore be very sensible to look into different insurance plans.

Inflation has a bigger impact in retirement

Inflation happens all the time. These days, prices for everyday items are seemingly constantly increasing. When you have a steady paycheck, it is not such a big deal. However, on a fixed retirement income, that inflation will have a bigger impact. You must also consider rising healthcare costs and Medicare premiums. Those will likely have a bigger impact on your budget.

Home repairs can empty your account

Owning a home is already expensive, and having to repair your home can cost a lot, as well. Take a look at the items in your home that could be nearing the point of repair. If possible, get them fixed up before you retire. Or, set some money aside for when the more expensive repairs happen.



1. “How Much Care Will You Need?” U.S. Department of Health and Human Services. Web. 22 December, 2015

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Miramontes Capital is a Registered Investment Adviser. Advisory services are only offered to clients or prospective clients where Miramontes Capital and its representatives are properly licensed or exempt from licensure. This blog is solely for informational purposes. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Miramontes Capital unless a client service agreement is in place.