If you have concerns about outliving your assets, you aren't alone among older adults. According to a 2015 survey of financial advisors that was conducted by the American Institute of CPAs, older folks mentioned concerns about outliving their savings more than anything else. Probably related to budgeting concerns, seniors also often expressed worries about health care costs and how much they should withdraw from their savings over time. It's important to dig a bit deeper to understand what's behind these worries.
Unpredictability Breeds Uncertainty About Financial Resources
One interesting thing about the survey is that many of the people who worked with these advisors had a high net worth and had always demonstrated good money management. They just had to face many uncertainties. It's difficult to predict future costs and impossible to predict exactly how long money needs to last.
The good news is that seniors can look forward to a longer life than previous generations could. These are some interesting figures from the Social Security Administration:
- A 65-year-old man's average life expectancy today is over 84 years.
- A 65-year-old woman's average life expectancy today is over 86 years.
- Just about 25 percent of today's 65-year-old people will live past 90, and 10 percent can expect to celebrate their 95th birthday.
How an Independent Living Community Can Ease Budgeting Concerns
Moving from a house into an independent living facility can improve your lifestyle and ease your budget. Consider the cost of owning your home even if you already have your mortgage paid off. These might include property tax, homeowners insurance, heating, cooling, cable and internet, and maintenance. Other things you may pay for to maintain your lifestyle include transportation, housekeeping, and lawn care. The thing that all of these expenses have in common is that they are unpredictable from year to year or even month to month.
Here at Eskaton, these costs are included; beyond that, they are all managed by the professional team that runs the facility. Not only do you free yourself from all of these separate and individual bills, you also get to free yourself from concerns about taking care of them on your own.
Do you want to see how the cost of an independent living community like Eskaton compares to your current living arrangements? You are very welcome to download this free comparison worksheet to help you understand how we might relieve your worries about running out of money by offering you more predictability.