Senior Style

Where does your money go? Evaluating seniors' biggest expenses A ccording to a 2020 survey from the financial services firm Edward Jones, 68% of workers soon to retire said they had no idea how much they should be setting aside for expenses, particu- larly health care and long-term care. Professionals approaching retirement would be wise to analyze the Con- sumer Price Index – Elderly (CPI-E). It is a good reference to estimate which future expenses will cost the most after retirement. The Bureau of Labor Statistics looks at consum- er spending and uses various data to determine the rate of inflation in key areas that apply to older adults starting at age 62. n Housing: According to data from the Employee Benefit Research Institute, in 2017, the most recent year for which data is available, housing accounted for roughly 49% of all spending for seniors. Focus should be centered on lowering those costs when a fixed income is imminent. The possibili- ties include paying off a mortgage; downsizing a home to have a low- er rent or mortgage payment and refinancing a home to a fixed-rate loan so that costs are predictable. n Food: Food costs may decline when there's only two mouths to feed, food and beverage spending may go up due to more leisure time and dining out. n Healthcare: Experts warn that while many expenses decline in retirement, health care spending increases. According to Fidelity, the average 65-year-old couple re- tiring in 2020 in the United States needed roughly $295,000 just to cover their retirement health care expenses. It's also important to realize that roughly half of the population will need long-term care at some point, offers The Motley Fool, and that requires advanced budgeting as well. Many people find that Medicare sup- plement plans can bridge the gap in expenses that government-run plans will not cover. Understanding which retirement expenses will be high can help peo- ple plan better for the future. n 646 Canyon Road | Novato, CA 94947 Deer-Park.net SENIOR LIVING AT ITS FINEST A newly renovated, all-inclusive, independent living community where friends become family. Ask about our move-in specials! Schedule a personalized tour today (415) 366-5677 PARENT-SORENSEN MORTUARY & CREMATORY (FD12CR91) Proudly offering kind, professional cremation and burial arrangements to all we are privileged to serve. As an independently owned funeral home, we are able to provide you with personal attention and no pushy sales tactics. It is our goal to make a difficult process as easy as possible, for you and your loved ones. 850 Keokuk Street, Petaluma, California 94952 Ph: (707) 763-4131 Fax: (707) 763-4765 www.ParentSorensen.com ANDREA L. RODGERS (FDR2369) JAMES M. SMITH (FDR1708) 24 October 17, 2021 Senior Style A Marketing Supplement of the Marin Independent Journal | marinij.com

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