When we think about retirement planning, the conversation often centers on one question: Have I saved enough?
It’s certainly an important question, but as we get older, another question becomes equally important: Will my finances allow me to live the life I want and remain independent for as long as possible?
For many people, especially here in the Monadnock region, that means remaining in their own home. But staying at home can come with costs that are easy to overlook when developing a retirement plan.
A home that worked perfectly at age 55 may present challenges at 75 or 85. Stairs, bathrooms, heating, snow removal, lawn care, and routine maintenance can all become more difficult. Modifications such as a first-floor bedroom, accessible bathroom, improved lighting, or ramps may eventually be necessary. And at some point, paying others to help maintain the home may become part of the household budget.
Health care is another important consideration. Medicare provides valuable coverage, but it doesn’t pay for everything. One of the biggest misconceptions is that Medicare will cover extended long-term custodial care. Generally, it does not. Whether care is eventually provided at home, in assisted living, or in a nursing facility, the costs can be substantial.
Transportation can also affect independence. In a rural area like ours, giving up driving can have a much greater impact than it might in a city with extensive public transportation. Planning ahead may mean budgeting for alternative transportation or considering whether your home’s location will continue to work for you later in life.
This is why retirement planning should go well beyond investment returns.
A good retirement plan should consider where your income will come from, how expenses may change over time, and how much flexibility you have when life doesn’t go exactly as planned. Social Security, pensions, retirement accounts, investments, and cash reserves should work together to provide dependable income while preserving resources for future needs.
Planning also means having conversations with family before a crisis occurs. As parents age, adult children often become involved in financial, housing, and health care decisions. Discussing your wishes ahead of time can make those decisions much easier for everyone.
Finally, make sure your legal documents are current. Powers of attorney and advance health care directives are not simply estate-planning documents. They help ensure someone you trust can assist with financial and health care decisions if you can’t make them yourself. Wills, trusts, and beneficiary designations should also be reviewed periodically.
Ultimately, successful retirement planning isn’t simply about accumulating the largest portfolio. It’s about creating the financial flexibility to make your own choices — where you live, how you spend your time, who provides your care, and how much you can continue doing for the people and causes you care about.
For many of us, that freedom and independence may be the most valuable retirement asset of all.
Josh Houle, CFP, is CEO of Houle Wealth Management in Keene.