The US census bureau says that the number of elderly population may exceed the younger people by 2035. People in the age-group of 50-70 are the worst affected by the current pandemic as well. 

According to CFPB (Consumer Financial Protection Bureau), it is crucial to have financial stability before you opt for retirement. Many US citizens either have an IRA or a 401(k) plan from their employer. If you make maximum savings in the 401(k) plan, maybe your retired life may go smoothly. The same goes for an IRA; it helps in tax advantages and retirement savings. But that’s not enough.

Here’s how you can financially secure your old age living with the following tips.

Settle the Loans or Debts

Once you cross your 50s, it becomes tough to manage health-related issues. You may have to work for an extended period to increase savings. But this is not possible for many elderly citizens. This leads to the accumulation of interest on their debts.

It is best to hire a financial institution and work out a financial plan with them. Ask them how you can settle the loans or debts in a short period. Once you get over with obligations, you can plan on achieving new goals in life.

Save 20% of your Income Every Month

Saving at an early age can prove beneficial in the later stages of life. For this, you will have to plan out your savings beforehand. Consult a financial planner and ask how you can save a significant portion of your income for old-age life.

Experts say, if you start saving from day one of your job, it is possible to make a sufficient amount for retirement. If you save at least 15% to 20% of your monthly income in your youth years, you can invest the amount in the second source of income or buy a property to let out. 

Make Investments

There are many opportunities where you can make investments. IRA and 401 (k) are the best options, but apart from these, you can invest in tax-free bonds, mutual funds, immediate annuities, etc.

The other investment options depend on your level of income. If you don’t have a mortgage loan or a home loan or any other debt, then you can plan to invest in a business that won’t require any physical efforts. Talk to your financial advisor about the same and contemplate different available options.

Maintain Cash Reserves and Get Medical Insurance

Many corporate organizations offer medical insurance post-retirement as well. But, you have to be careful with the medical emergencies that can burn a hole in your pocket.

Medical insurance secures your financial health, and maintaining cash reserves gives you freedom of liquidity to face unforeseen circumstances. Most senior citizens opt for cashless medical insurance that lessens the burden on their savings and reinstates the financial stability.

Share the Load

If you’re married or have a partner, you may ask your partner for financial help and plan your finances wisely. Save your income proportionately.

A monthly savings of 20% to 30% from both the partners can bring in financial stability later in life.