(NewsUSA) - When making financial plans for retirement on a fixed income, remember that your retirement life at the beginning is not how it will continue indefinitely. A CERTIFIED FINANCIAL PLANNERTM professional will assist you in creating a smooth retirement plan that best fits your needs over time. "Your retirement will evolve in phases as your priorities change," says Cary Carbonaro, CFP.® "One of the most important things you can do right now is understand how your retirement will change and then budget for those different phases."
Carbonaro suggests thinking of retirement in three phases:
Regardless of your phase of retirement, it's important to consider all your sources of retirement income. For most people, these include savings, investments and Social Security. Some people also have a pension plan from a former employer.
Keys to successful financial planning on a fixed income include:
When developing a financial plan, retirees on a fixed income should also factor in the need for long-term care, which might involve paying for personal assistance with bathing, dressing and taking medications.
Caring for adult children also is becoming a more common source of costs for retirees. Census data suggest that more than one-third of adults aged 18 to 34 are living in their parents' home. In some cases, the situation is reversed, and retirees find themselves moving in with their adult children, either as a matter of preference or because of the expense of long-term care.
For more information on financial planning strategies on a fixed income, visit LetsMakeAPlan.org.