As we plan for our retirement, most of us focus on growing our 401k nest egg—the money we will depend on once we retire. What many fail to realize, however, is that there is a link between our 401k retirement plan and our health.
Retirement planning is not just about building a large sum to see us through our golden years; it is about ensuring that we live a comfortable retirement-life without deteriorating health. Here are the essential things you need to know about the surprising link between your 401k retirement plan and your health.
Healthcare Costs
Did you know that the number one expense you will incur during your retirement period is healthcare? According to a recent study by Fidelity, an average 65-year-old couple retiring in 2020 would require an estimated $295,000 to cover health care costs during their lifetime.
Considering this, it’s clear that your 401k retirement plan plays a considerable role in safeguarding your health during retirement. To avoid unexpected healthcare costs, save more than you think you need in your 401k account.
Retirement Stress
Retirement can be a stressful time for many. Whether it’s the absence of a daily routine, loss of identity or social interactions, your post-retirement life is fundamentally different from your pre-retirement days. This can take a significant toll on your mental and physical well-being if not correctly managed.
Rejoice, however, for your 401k plan can work as a safety net, protecting you from such stresses. To avoid this, include financial planning for mental and social well-being in your 401k retirement plan.
Maintaining Active Lifestyle
As we grow old, we become more susceptible to health issues and decreased mobility, leading to sedentary lifestyles. It’s no secret that leading an active lifestyle is essential for your overall well-being.
By planning appropriately, saving more and working longer, you increase the likelihood of maintaining an active lifestyle during your retirement years. This is why you should maximize your 401k retirement account and aim to save more until you retire.
In conclusion, a 401k retirement plan is not just about growing a nest egg; it is about deciding the kind of life you want to lead during your retirement years. By keeping healthcare costs in mind, avoiding post-retirement stressors, and maintaining an active lifestyle, you will lead a fulfilling life during your sunset years. Start planning today.
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