Can I afford to retire? An elderly couple sitting on a beach holding hands.

Can I afford to retire? A Complete Guide to Retirement

Saint Ann’s Retirement Guide: Can I Afford To Retire?

So, you’re thinking about retiring? Congratulations! You’re approaching one of life’s most significant milestones. With such a milestone comes the question: “Can I afford to retire?”

In America, the average person retires at 62 years old. But you must be at least 67 to receive full retirement benefits from the federal government. 

You need some money saved up to retire early at 62. But, of course, you’ll need even more to retire earlier than that.

So, what’s the magic number? How much money do you need so that you can afford to retire? 

The answer is complex. Every person and situation is different. However, some key factors can provide clarity. 

Here at Saint Ann Retirement Center, we’ve aimed to answer some of your most pressing questions to help you answer the question: “Can I afford to retire?”.

Contents

Can I afford to retire? A hand drawing a retirement graph growing in size concept.

How much money does the average person need to retire?

$1,000,000 (one million dollars) has been a number floated around by retirement experts for years, and it’s one you’ve likely heard of online. 

But what can one million dollars in retirement savings give you? According to Merrill, a Bank of America company, a retirement savings account valued at one million dollars gives you an annual income of roughly $40,000.

This falls in line with another notable retirement expression, the four percent rule. This rule says you should only withdraw four percent of your retirement savings, or nest egg, each year.

Since your retirement savings account is tied to an index fund, it will steadily grow each year. Four percent, as determined by certified financial planners, leaves enough money behind to replace itself. So the account’s annual growth matches the amount you took out. 

Take more than four percent, and your account’s annual growth won’t be enough to replenish itself. Take less, and you won’t have enough to live off.

But is $40,000 a year enough for you and your family?

Every year, that answer is increasingly “no.” However, depending on your lifestyle and accustomed standard of living, $40,000 might work.

Could you manage working for a few more years?

The last thing someone wants to hear when they’re approaching retirement is having to work a little longer. 

Unfortunately, it is a great way to add a little more cushion to your savings.

Working until you can receive full retirement at 67 has several benefits.

You will get bigger social security checks.

Social security income checks are calculated using the 35 years of our highest income. So if you’re earning more now than you did early in your career, then working more higher-income years can raise the amount on your checks. 

This is even better if you haven’t yet hit 35 years. If you retire before you have 35 years of income, those zeroed years factor in and can tank your monthly income check amounts.

You’ll have more time to save.

Working additional years gives you more years to save and add big chunks of money to your retirement account.

And since you’re anticipating retirement, you can save more than you usually would.

Your accounts will get additional years of compounding interest.

Compounding interest is perhaps the most essential part of your retirement portfolio.

Say your portfolio has a 5% compounding interest rate, and you start with $1,000. After a year, you’ll have $1,050. But now you get 5% interest on the $1,050. A year later, you’ll have $1,102.5. Another year will make $1,157.6.

If your retirement account has hundreds of thousands of dollars, these percentile increments will be substantial. And it will mean even more over 30+ years.

You’ll have fewer years of withdrawals.

Lastly, you’ll have fewer years of withdrawals. Once you begin withdrawals, you stop adding to your account, and your account’s value plateaus.

The fewer years you withdraw, the more money you can take out annually.

Could you manage forecasted inflation?

Inflation is a hot-button topic right now. Inflation is hitting Americans hard. Additionally, the stock market has taken a hit. Many aspiring retirees are seeing their retirement portfolios shrink and the devaluation of what’s left behind. 

People who thought they could afford to retire a year ago find themselves unable to today.

Let’s look back at the $40,000 figure. If you retire today and live off $40,000 a year, you might maintain the standard of living you are used to. But what about ten to fifteen years from now?

$40,000 in the future won’t be what it is today. It’s not even worth what it was a year ago.

Take inflation into serious consideration when determining if you can retire or not.

Do you have substantial debt?

“Can I afford to retire if I have substantial debt?” If you have debts, you should consider holding off on retirement. Every dollar you owe in debt is a dollar less in the income you receive from retirement account withdrawals.

Additionally, having debt without a reliable source of income is a risky financial move.

Do you have a reserve for significant expenses?

You may face some considerable expenses around retirement age. For example, healthcare costs like hospital bills, ambulance fees, medications, health insurance, and surgeries can cost hundreds of thousands of dollars. 

Do you feel comfortable taking on those expenses with how much you have saved up?

If so, proceed confidently.

Do you struggle to pay current bills?

Are bill payments like rent, a mortgage from real estate, and utilities hard for you to stay up to date on?

If so, you’re likely neglecting your savings account to prioritize bills. Unfortunately, this could be a bad sign for your retirement prospects.

In conclusion…

“Can I afford to retire?” Your ability to retire depends on your desired standard of living if you anticipate significant expenses, where you live, and how much money you have saved up.

If you’re interested in retirement and are looking for a place to live, consider Saint Ann Retirement Center. We offer assisted living and independent living options for our residents.

Our facility boasts excellent amenities, freshly-cooked meals, and professional staff who can help you live comfortably and independently.

If you’re interested, visit the rest of our website or give us a call to schedule a tour today!

Saint Ann Retirement Center offers the best senior living options for retirement in Oklahoma City. Assisted living and independent living accommodations that enhance the life of individuals looking for support and comfortability as well as a variety of amenities to keep the community active and engaged. Saint Ann is owned and operated by The Catholic Archdiocese of Oklahoma City, a not-for-profit Christian organization.

Assisted living near me, assisted living okc

Choosing the Best Assisted Living Near Me in 10 Steps

Assisted living senior living independent living in oklahoma city Transparent Clean St. Ann Assisted Independent Living BLK
Saint Ann Retirement Center Assisted Living okc and Independent Living

Choosing the Best Assisted Living Near Me

When transitioning yourself or a loved one into an OKC assisted living facility, there are many things to consider. But ultimately, happiness and health are above all else. To ensure this, Saint Ann Retirement Center has identified ten factors for you to consider when choosing an assisted living facility in OKC. 

1. Location 

When you look for assisted living near me, choosing an assisted living facility near loved ones is one of the most important decisions. It’s easier for them to visit you regularly or be readily available in an emergency. A local assisted living facility can also make things more comfortable for you. You will be near familiar places. The other residents around you will also be from the same community. Therefore, you will feel more at home at a local assisted living facility. 

2. Meals

Food is often overlooked when choosing assisted living facilities, but not at Saint Ann. We understand how important it is for seniors to have balanced, healthy meals. Some facilities have their food catered, which leads to little variety from day-to-day, and the food may sit out for some time before it gets to you. That is not the case at Saint Ann. Instead, our outstanding chefs prepare our delicious meals daily and plan menus around resident preferences. When touring an assisted living facility, please pay close attention to the quality of the food, how it’s prepared, and who’s preparing it. You’ll be eating it every day. So it’s important that you like it and that it’s worth the cost. 

3. Amenities 

Amenities are the features of the assisted living facility, which can include: 

  • Libraries and game centers
  • Computer rooms
  • Fitness and wellness centers
  • Chapels 
  • Beauty Salons
  • Wi-Fi
  •  And more! 

Some assisted living facilities boast many amenities, while others focus solely on personal care. Neither one is better than the other. What matters is what you value. Suppose you can live independently but need help taking medication or performing day-to-day personal care activities. In that case, you might enjoy a facility with more amenities that you’ll be able to use. 

If you need more attentive care, you may like a facility with fewer amenities.  Searching for assisted living near me could help you find options in your area. However, it would be best if you didn’t have to pay for assisted living amenities you can’t use. 

4. Staff 

Staff members will interact with you throughout every day. They are available to walk you down the hall, prepare your food, manage your medication, and provide personal care. Finding a place with a loving, caring staff of genuine people is perhaps the most critical part of choosing an assisted living facility. An in-person visit is the best way to gauge a staff. Perhaps talk to some residents or family members of residents and see what they think. 

5. Activities 

Activities are at the heart of every great senior living community. They get you active, engage you with other residents, and make the facility a fun, social place! 

Assisted living activities at Saint Ann include: 

  • Entertainers
  • Bingo and games
  • Chair Volleyball 
  • Strength training sessions 
  • Religious services 
  • Arts and crafts 
  • Socials 
  • And more! 

When you tour in person, ask for a brochure or form that includes their activity list so you can review it when you get home. Also, ask to see where activities take place! 

Assisted Living near me in OKC

6. Space 

Be mindful of how much space there is in the facility’s common areas. For example, if you use a wheelchair, will you be able to access every part of the building, or will some places be unreachable? 

Also, consider how much space you have in your room. Is it large enough for your liking? Does it give you room to move about freely? Can you accommodate people in your room, like if friends or family came to visit? Finding answers to these questions is necessary when choosing an assisted living facility. 

7. Cost 

The cost of assisted living near me varies from facility to facility and even more so from city to city. Many people save money by moving to assisted living because they don’t have to pay out of pocket for helpers, home maintenance, lawn care, groceries, etc. 

The cost of assisted living includes many things, like: 

  • Meals 
  • Activities & Life Enrichment
  • Personal Care & Nursing Oversight
  • Housing & Utilities
  • Housekeeping
  • Transportation
  • Medication Administration

Consult with your family and decide if the move to assisted living is right for you. 

8. Reviews 

Read reviews of the facility online. These reviews are the most honest reflections you will get of the facility. 

Keep in mind that everyone’s experience is different. Someone might have had a wonderful time while someone else, for whatever reason, did not. So read these reviews carefully and parse out what information you can. 

Try to avoid particularly negative and overly positive reviews. The ones in the middle will likely provide more substantial insight into the experience at a facility, weighing the good and the bad. 

9. Be Honest 

When you search for assisted living near me, you want an OKC assisted living facility that caters to your needs. To do this, you’ll need to be honest with yourself. 

There’s no shame in admitting you need help. Assess what you want in a facility, but make sure it has what you need regarding personal and medical care. 

Additionally, be honest with yourself about the transition to assisted living. Too often, people prolong the transition. This leads to more accidents at home, where it’s harder to get immediate help. Our current assisted living residents always advise future residents to decide while they still can for themselves. 

But this doesn’t mean you are receiving constant medical attention. Assisted living and nursing homes are quite different. That’s what’s great about a place like Saint Ann. 

We have a staff of dedicated, lovely people who give you specialized personal care. But we also provide you with exceptional amenities, fun activities, and delicious meals. 

10. Schedule a Visit 

Explore the options when you search for “assisted living near me” and take a visit yourself. Of course, loved ones can visit for you, but it is truly best for you to see a place with your own eyes. Get a sense of the building. Meet with the staff. Mingle with the other residents. There is no replacement for yourself! 

In conclusion… 

We hope to have provided some key insights into choosing the right option for “assisted living near me” that adjusts to your needs. Saint Ann Retirement Center is happy to provide a comfortable environment with a caring staff, fun activities, tasty food, and quality amenities for you. 

Come see it for yourself! If you’re interested in transitioning into assisted living, give us a call, check us out on Facebook, or visit our website to schedule a visit today! Infographic on Choosing the best assisted living near me

Saint Ann Retirement Center

  • Oklahoma City
  • Edmond
  • Mustang 
  • Midwest City