One of the challenging things about retirement planning is the fact that costs can tend to rise while your income may stay about the same. While there was a cost-of-living increase for Social Security recipients this year, it was quite modest. Nor do increases automatically occur each year.
Given the relatively fixed nature of your retirement income you really have to be accurate and realistic when you are projecting your future financial capabilities. Along these lines one thing to take into consideration are ever-rising property taxes.
People are living longer than ever with the average lifespan being around 78 years. These averages are based on all people of all ages. But once you reach the age of 50 and older your life expectancy is going to be into the 80s. If you retire when you are about 67 you may be looking at a couple of decades or more when you have to pay your way without working.
Over 20 years you could indeed see some pretty significant increase in your property taxes, and this is something to remember when you are making long-term financial projections.
There are options that are available to you if your margins are thin. You may not need as much house as you have and of course property tax assessments are based on the value of your property. Downsizing can be a good option both financially and practically if you find yourself benefiting from closer quarters when your physical capabilities may not be what they once were.
If you would like some assistance as you formulate a plan for the future, don’t hesitate to pick up the phone to arrange for an informative consultation with a licensed and experienced Oklahoma City financial planning lawyer.
Author, President and Founding Attorney
Parman & Easterday