Shaw Media / shawlocal.com/kendall-county-now • Thursday, October 19, 2023
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3 tips to catch up on retirement savings One need not look long or far to be reminded of the importance of saving for retirement. Indeed, it’s hard to go a single day without encountering roadside billboards, television and streaming service advertisements, and/or promotional emails touting the retirement planning services offered by an assortment of investment firms. If those adds seem ubiquitous, it’s for good reason, as saving for retirement is among the most important steps individuals can take as they look to ensure their long-term financial security. Despite the widely accepted significance of retirement planning, studies indicate that many people are behind on saving and aware that they’re behind. According to a recent survey from the online financial resource Bankrate, 55 percent of respondents indicated they are behind on their retirement saving. In addition, a Gallup poll released in May 2023 indicated that just 43 percent of nonretirees think they will have enough money to live comfortably in retirement. The good news for individuals who are behind or concerned about their financial wellness in retirement is that three strategies can help them catch up on their savings. 1. Take advantage of catch-up rules if you qualify. Laws governing retirement accounts in the United States allow individuals 50 and older to contribute more to their retirement accounts than they’re eligible to contribute prior to turning 50. Bankrate notes that current laws allow individuals over 50 to contribute an extra $1,000 per year to a
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traditional or Roth IRA and an extra $7,500 annually to a 401(k), 403(b) or 457(b) account. In Canada, individuals can contribute the maximum to a Registered Retirement Savings Plan (RRSP). According to the National Bank of Canada, individuals can contribute up to 18 percent of their annual income to an RRSP, and those contributions are deducted from taxable income. That means individuals are potentially saving more for down the road and paying less in taxes today. 2. Itemize your tax deductions. The online financial resource Investopedia notes that taking the standard deduction is not for everyone. Individuals with significant amounts of mortgage interest, business-related expenses that are not reimbursed by an employer, and/ or charitable donations may lower their tax obligation by itemizing their deductions. That reduction in tax obligation allows individuals to redirect those funds to their retirement accounts. 3. Cut back on discretionary spending. Perhaps the simplest, though not necessarily the easiest, way to catch up on retirement savings is to redirect funds typically spent on discretionary expenses like dining out or travel into retirement accounts. One way to feel better about this approach is to remind yourself that the less money spent on dining out and travel now means more money will be available to spend on such luxuries in retirement. Three simple strategies make it easier to catch up on retirement savings.
Did you know? The burden on health care costs in retirement could be a significant hurdle for retirees without a sizable nest egg or effective strategy to cover such expenses. According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple aged 65 in 2022 could need around $315,000 after taxes to cover their health care expenses in retirement. Thought traditional retirement goals like financing travel or relocating to a warmer climate are worthy pursuits, it’s vital that indi-
viduals of all ages, including those on the cusp of retirement, recognize the importance of saving for health care expenses as well. Such expenses, which include medication costs, are easy to take for granted when individuals are still working. However, Fidelity notes that generics, branded drugs and specialty drugs account for roughly 17 percent of retirement health care expenses. That equates to around $53,500 that might be needed to pay for medication alone.
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Friendship included. Cedarhurst is a recognized senior housing leader, serving thousands of seniors and their families in multiple states. Our mission – every person should feel loved, valued, supported and able to live life to the fullest – is at the heart of everything we do. Not surprisingly, friendship is an integral part of our design. We know older adults look for friendship as the antidote to aging’s isolation and loneliness — and who wouldn’t rather feel loved, valued and supported? When we create communities, train team members, and develop programs and activities, we hold tightly to our mission-based strategy: Let’s be friends. Friends enrich life. It almost goes without saying that friendship is included. After all, a Cedarhurst community is so dedicated to fulfilling residents’ lives, creating opportunities for growth and enrichment, and providing a comfortable launch pad for fun
and adventure — friendship seems
prepared choices that include heart
inevitable.
healthy, brain boosting, gluten-free,
Take dining, for example. Crafted
diabetic-friendly and low-sodium
by CedarhurstSM, our culinary
menu items. Residents dine well,
program, features delicious, freshly
which leads to contentment, which
leads to socialization. Head to dinner and you’ll bump into friendly neighbors. Or arrange to meet your friendly neighbors for dinner — either way, the food’s great and you’ll have a great time! And then there’s the array of programs and activities. Guest speakers, card clubs, book clubs, art workshops, fitness groups, movies — choices vary from community to community, depending on residents’ interests and preferences, but the effect is the same: Give residents reasons to gather for entertainment and education, and they’ll grow their circles of friends. Human touch and connection are needed for well-being. With a community lifestyle that offers possibilities for friendship galore, we give loneliness no room to flourish. For more information. Call Cedarhurst of Yorkville at (630) 884-5482 or visit CedarhurstYorkville.com.
Friendship INCLUDED. INCLUDED.
Friends enrich life. And Assisted Living and Memory Friends enrich life. And Assisted Living and Memory Care at a Cedarhurst Senior Living community help Care at a Cedarhurst Senior Living community help make you or your loved one rich with friends. make you or your loved one rich with friends.
AND AND NOW, NOW, THE THE FRIENDSHIP FRIENDSHIP BEGINS. BEGINS. 630.884.5482 or CedarhurstYorkville.com CedarhurstYorkville.com 630.884.5482 or Cedarhurst Cedarhurst of of Yorkville Yorkville 4040 Cannonball 4040 Cannonball Trail Trail •• Yorkville, Yorkville, IL IL 60560 60560
DEPENDABLY KIND • HOW YOU LIKE YOUR FRIENDS DEPENDABLY KIND • HOW YOU LIKE YOUR FRIENDS THE CEDARHURST PROMISETMTM We promise. If you’re THE CEDARHURST PROMISE We promise. If you’re not satisfied and decide to move out within your not to move out within your firstsatisfied 60 days,and we’lldecide completely refund your rent.* first 60 days, we’ll completely refund your rent.*
*Cedarhurst Promise™ program is only available at advertised community. Not applicable for respite or other *Cedarhurststays. Promise™ program is onlyonly available advertised Not applicable for respitecommunity or other short-term Refund is available if moveatout is a resultcommunity. of dissatisfaction with Cedarhurst short-term stays.throughout Refund is available only ifrent move out isincludes a result base of dissatisfaction with Cedarhurst community as documented stay. Complete refund rent only. Additional terms and as documented throughout rent refundfor includes base details. rent only. Additional terms and conditions may apply. Pleasestay. see Complete Resident Agreement additional Void where prohibited. conditions may apply. Please see Resident Agreement for additional details. Void where prohibited.
13 SHAW MEDIA Shaw Media / shawlocal.com/kendall-county-now • Thursday, October 19, 2023
BOOMERS ➤ ➤➤➤➤ The positive impact of creating friendships at Cedarhurst ➤➤➤