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How to budget for retirement

After what feels like a lifetime in the workforce, retirement is a welcome change for many individuals. Upon retiring, people often engage in hobbies they may have previously relegated to the back burner. Travel opportunities increase in retirement, and retirees may live more relaxed and less stressful lives.

Stress stemming from a looming retirement can creep up for those people who have not taken the time to account for how their finances will change once they’re no longer working. Without a consistent salary or other income coming in, retirees may have to change their habits and spending accordingly. This is particularly true for those who did not

sock away enough in retirement savings.

The key to enjoying retirement is creating a retirement budget and sticking to it. Budgeting sets retirees up for more enjoyable golden years. The following are a few steps to creating a retirement budget.

• Add up all of your income. As retirement nears, it can be helpful to sit down with a financial professional and calculate all of the income streams that ultimately will be replacing your paycheck. These include Social Security benefits, tax-advantaged retirement accounts like IRAs and 401(k)s, pensions, taxable investments, and even part-time earnings. This will give you a picture of projected income, which

can be divided by the number of years you expect to spend in retirement.

• Figure out your mandatory expenses. Charles Schwab suggests considering the spending items that you will really need in retirement. These can include housing, utilities, clothing, medical insurance costs, and transportation. These needs may change through the years, so the budget can be reevaluated each year.

• Calculate any discretionary expenses. Spending that falls in the “want” territory may include travel, hobbies, gifting family members like grandchildren, and any big purchases like a boat or vacation timeshare.

• Consider expenses that may go up. While certain

expenses may go down, like commuting costs, grocery bills, and expenses related to children, bills for utilities, recreation, property taxes, and more likely will increase through the years.

• Compare projected income against projected expenses and see where the chips fall. If you find that income streams fall short, you may have to adjust investments before your retirement or you may have to take a part-time job after retirement. Sometimes spouses may not be able to retire at the same time if one person’s salary will be needed to continue covering all expenses.

• Don’t overlook health care. Although you may be covered by Medicare and

an insurance plan from a former employer, supplemental premiums and outof-pocket costs may continue to rise during retirement.

According to the 2024 Fidelity Retiree Health Care Cost Estimate, on average, a 65-year-old person may need $165,000 in after-tax savings to cover health care expenses.

Retirement comes with exciting prospects, and careful budgeting for the days when you aren’t working can make for a more enjoyable post-work life.

Plan for your future and protect the people and causes you care about with Trust & Estate Services from Kish Bank. Meet with one of our local experts today to explore your options and ensure your wishes are carried out.

Funeral pre-planning with a professional eases anxiety

The death of a loved is difficult to confront. Emotions are elevated and grief is prominent. which can make it hard to make important decisions. Quite often several people need to come together to make decisions necessary for a family member’s funeral arrangements. There also is a financial component to consider.

According to Lincoln Heritage Life Insurance Company, the average funeral costs between $7,000 and $12,000, which may or may not include viewing, burial, transport, casket, and other fees. Surviving family members responsible for planning a funeral may be asked to contribute a portion of these expenses if other arrangements have not already been made, which can

exacerbate stressful feelings during an already difficult time.

Funeral pre-planning is a good way for individuals to make a difficult time a little more manageable for their survivors. Funeral homes frequently work handin-hand with individuals and families to customize pre-planning packages and facilitate the process. Here’s a rundown of pre-planning as individuals consider their options.

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your options

Pre-planning a funeral enables people to consider all of the options without the time constraints of making funeral arrangements directly after the passing of a loved one. A knowledgeable staff member at a funeral

home, can explain the offerings and answer any questions.

Straightforward process

Unless an individual has planned a funeral in the

the process with ease. Most have pre-planning kits that include all of the essentials of the process, such as choosing caskets, deciding on prayer cards and designing floral arrangements.

past, there could be a lot of unknowns. Funeral homes handle these events every day and can guide families through the intricacies of

Avoid confrontations

Working directly with a professional also helps alleviate the burden on fam-

ily members, who may not agree on arrangements or concur on what they believe would be a loved one’s final wishes. When pre-planning a funeral, individuals can spell out in their own words exactly what they desire and even finance the funeral in advance.

Establish a payment plan

A funeral home staff member can go over the various ways to fund funeral expenses, and may work out a payment schedule to spread out the expense over a period of time. He or she also may explain how funeral prearrangement can be a way to “spend down” assets in a way that protects those monies from look-back periods when determining eligibility for certain assisted

living or nursing facilities should that be required in the future.

Works with religious officials

Very often a funeral home is a conduit that facilitates all facets of the funeral process. They may reach out to a preferred house of worship to organize a mass or other religious service, and will also contact the cemetery and work with them to secure a plot and deed. This also alleviates pressure down the line on grieving family members who need time to mourn.

Pre-planning a funeral merits consideration. Working with a trusted funeral home removes much of the pressure during such difficult times.

Company Juniata, and Surrounding Counties for 33 Years

Managing and planning one’s estate sounds like a task reserved for the überrich. But that’s a common, and potentially costly, misconception. Indeed, estate planning is a necessary component of long-term financial planning no matter the size of a person’s investment portfolio.

What to know about estate planning

tools that can protect assets, minimize estate taxes and provide for beneficiaries. Trusts can be revoca-

probate and reduce estate taxes. The National Bureau of Economic Research indicates trusts can reduce estate

be counted as part of your responsibility for paying for skilled nursing home admittance.

The following are some basic steps anyone can take to establish an estate plan.

• Create a will. A will is a legal document that specifies how your assets will be distributed after your death. Although a will can be set up without an attorney, relying on an attorney to create or update a will can ensure that it is legally sound and reflects your intentions. In the will you can name an executor who will carry out the plans of the will. Without a will, intestacy laws where you live will dictate the distribution of your assets.

• Establish trusts. Morgan Legal Group says trusts are

Estate planning is an umbrella term that encompasses anything from asset allocation after death to end-oflife health care decisions to power of attorney should an individual become incapacitated. Key components of an estate plan typically include wills, trusts, power of attorney, and health care directives. According to a 2021 survey by Caring.com, only 33 percent of Americans have a will in place, and 60 percent of respondents in the same survey cited “not having enough assets” as reasons for not creating an estate plan.

• Determine powers of attorney and health care proxies. If someone becomes incapacitated, that person will need responsible people who can act on their behalf. A financial or legal power of attorney can help with paying bills, accessing accounts and managing finances and other needs. A health care proxy can be listed on an advanced health care directive, known as a living will. The proxy will communicate your wishes indicated on the directive and see that your wishes are honored.

beneficiaries and financial futures. It is always best to work with legal, medical and tax professionals when drawing up estate plans to avoid any issues that can arise when matters are not decided ahead of time.

ble or irrevocable. Special needs trusts also can be set up. Trusts can help avoid

taxes by up to 40 percent. Trusts also can shield some of your assets so they cannot

Knowing what’s included in an estate plan can ensure that people make informed choices about their assets,

Signs a loved one might need assisted living

Assisted living facilities provide an invaluable service. When a medical condition, developments associated with aging or another variable affects an individual’s ability to live independently, assisted liv-

ing facilities can ensure such men and women get the help they need to live as fully and actively as possible. It’s not always easy to identify when an individual may need to move into an assisted living facility. Some

individuals choose to do so on their own, but families often make such decisions together. As families work to determine if a loved one should move into an assisted living facility, they can look for various signs that sug-

gest the time is right to do so. According to the Elder Care Alliance, signs that an individual may benefit from assisted living include:

• Requiring routine reminders to take medication

• Noticeable changes in weight, including weight loss or gain

• Loss of mobility or increase in falls

• Signs that household maintenance is being neglected

• Difficulty with daily tasks like grooming and meal preparation

• Increased isolation

• Loss of interest in hobbies

It’s important for families to recognize that some of the signs noted above might suggest the presence of a condi-

tion or disease that would not, if treated successfully, compromise an individual’s ability to live independently. For example, the SilverSneakers program offered through Tivity Health notes that weight gain among seniors may be attributable to slower metabolism, a less active lifestyle or menopause for women. Each of those conditions can be addressed without requiring a relocation to an assisted living facility. Family members are urged to discuss anything that seems to be affecting a loved one’s ability to live independently with that person’s health care team before they consider if a person needs to move into an assisted living facility. It’s equally important to

ask a loved one’s health care team which type of facility they think might be most beneficial if, in fact, they think it’s in an individual’s best interest to relocate. No two facilities are the same, and the Elder Care Alliance notes many specialize in specific types of care, such as tending to individuals with cognitive issues like dementia or physical issues like limited mobility.

Assisted living facilities help millions of individuals every day. Families can work together to decide if a loved one can benefit from moving into such a facility.

3 tips to stretch your retirement savings

Cost-of-living has garnered significant attention in recent years and was one of the key issues surrounding the 2024 presidential election in the United States. That extra attention is warranted, as a recent Bankrate analysis of data from the U.S. Bureau of Labor Statistics found that consumer prices were 23 percent more expensive in February 2025 than they were in the same month in 2020.

Rising consumer prices have been a cause for concern among people from all walks of life, but retirees might be among the most vulnerable to such increases. Lacking a desire to return to the workforce or oppor-

tunities lucrative enough to make such a transition worthwhile, retirees may be looking for ways to stretch their retirement savings. The following three strategies may help seniors do just that.

1, Seek the help of a financial planner. Some seniors may see working with a financial planner as another expense at a time when they’re trying to cut costs, but such professionals can provide a notable return on investment. Financial planners can help seniors currently navigating complex financial waters without a compass direct their resources toward low-risk vehicles that can grow wealth with

the goal of ensuring a rising cost-of-living does not drain existing savings and leave seniors destitute. Even incremental growth can help combat inflation, and financial planners can identify options that promote growth while limiting risk.

2. Take up gardening. People from all walks of life have lamented rising grocery bills in recent years, but seniors are not helpless against rising food prices. The Economic Research Service at the U.S. Department of Agriculture estimates food prices will increase by 2.2 percent in 2025. Retirees are uniquely positioned to combat those increases, as many have the

time and space to grow their own foods at a fraction of the cost of buying the same items at the store. Though gardening requires an investment of time (to learn the trade) and money (tools and a landscape adjustment, if necessary), it’s possible to recoup such initial costs rather quickly. A 2021 report on the website Greenhouse Today estimated that a single tomato plant, which in 2025 typically can be purchased for less than $10, can yield 20 to 30 lbs. of tomatoes, producing somewhere between 20 and 90 tomatoes (size of the tomatoes will affect total yield).

Grocery shoppers know that one pound of store-bought

tomatoes is likely to cost around $5, give or take a dollar or two. In this example, seniors can save a substantial amount of money by growing their own food at home. Seniors can even join gardening groups where each member grows a particular food and then yields are shared among the group, leading to even more savings over time.

3. Request generic medications. The cost of medication is not fixed and is often vulnerable to changes in governmental policies. However, it’s fair to note that many seniors spend thousands of dollars per year on medication. Seniors can request generic alternatives

to brand-name medications. The health care experts at Humana estimate generic drugs cost 80 to 85 percent less on average than brandname drugs. That’s a considerable cost savings, and that advantage could prove even more significant if policy changes increase outof-pocket medical costs for seniors in the coming years. These three strategies can help seniors manage their money and protect their retirement savings in an era marked by a rising cost-ofliving and an unpredictable economy.