Q: I’m a single woman in my 50s with no children. At what age should I start planning for post-retirement, including where to live, and who would take care of me if I become disabled?
A: First, make sure you’ve created an estate plan, including a will with a named executor, a health care power of attorney and a financial power of attorney. You can choose the same person for all three roles or different individuals for each area of responsibility. The person designated as your financial power of attorney handles your finances if you became incapacitated, while your health care proxy decides on your care if you cannot do so.
In addition, consider buying a long-term care insurance (LTC) policy, ideally before age 60. This coverage would help defray the cost of a nursing home or home care–and help ease fears about paying for care in later life. You can use funds from your health savings account, if you have one, to pay the LTC insurance premiums.
And, put aside–and invest– money now for your future housing needs. The funds likely will be a godsend: In retirement, you might want or need senior assisted living, or eventually, a long-term care facility–both of which can empty your wallet.
