A Long island Retirement: Balancing Dreams and Reality
For many, retirement is a time to relax, pursue hobbies, and spend more time with loved ones. But for those on Long Island, the path to a cozy golden years is frequently enough paved with complex financial considerations.Richard Peshkur, a 58-year-old telecommunications engineer from Manorville, exemplifies this reality. He’s meticulously planned for retirement for the past decade, making his home more energy-efficient with solar panels and heat pumps. “We love it here and would like to stay here,” he says, emphasizing his desire to remain close to family and friends.
His financial picture is strong – he owns his home, enjoys a six-figure salary after 34 years with the same company, and diligently contributes to his retirement accounts. However, Peshkur remains wary of one looming factor: property taxes. ”That’s the only thing that will make us leave,” he says, noting the substantial increase in his annual tax bill from $4,800 in 2004 to over $15,000 today.
Peshkur’s experience highlights the unique challenges facing Long Islanders approaching retirement.
with a rising cost of living and a significant burden of property taxes,many retirees find themselves grappling with tough choices. They must weigh the desire to stay in their familiar communities against the financial pressures of maintaining their current lifestyles.
Lisa Aviles, 66, of Rocky Point, offers a contrasting viewpoint. After retiring from verizon in 2008, she returned to the workforce a few years later, finding retirement “boring.” Today, she works as a standardized patient at a local medical school, adding to her household income of around $100,000. “We always lived simply,” she says, explaining their comfortable financial position.
While Aviles’ situation demonstrates the possibility of maintaining an active lifestyle in retirement,it’s important to note that not all retirees have such financial security. Across the country, a significant portion of working-age individuals lack adequate retirement savings, making the prospect of a comfortable retirement more precarious for many.
Experts stress the importance of thorough financial planning for those nearing retirement. This includes assessing income sources like retirement funds and Social Security, and also carefully analyzing expenses such as housing, healthcare, and everyday living costs.
One estimate by GoBankingRates suggests that a comfortable retirement in New York requires an annual income of $85,480. These figures underscore the need for retirees to develop a clear financial blueprint that aligns with their personal circumstances and aspirations.
Navigating Retirement on Long Island: Home Equity and Tax Relief Options
Retirement planning frequently enough brings anxieties, especially on Long Island, where property taxes are notoriously high. However, for homeowners, their primary residence often represents their largest asset, offering valuable options for securing financial stability in retirement. Annie Holdreith, associate real estate broker at Daniel Gale sotheby’s International Realty, emphasizes, “Anybody I deal with, their house, the primary residence, is usually the largest asset, and they just have to assess, are they going to age in place? Are they going to move somewhere on Long Island? Are they moving off of Long Island?”
Holdreith’s advice highlights a crucial decision facing Long Island retirees: whether to stay put, relocate within the region, or explore options outside of Long Island. Fortunately, homeowners who purchased their properties several years ago are likely sitting on significant equity, providing a financial cushion for retirement.
Credit: Getty Images/sorbetto
While Long Island’s renowned schools frequently enough justify the hefty property taxes, retirees living on fixed incomes may find these costs burdensome. Fortunately, New York State offers several programs designed to alleviate the financial strain. These programs, particularly those aimed at individuals 65 and older, provide valuable tax relief options.
One such program, the Senior Citizen’s Real Property Tax Exemption, allows eligible homeowners to reduce their property taxes significantly. Understanding these programs and exploring strategies for maximizing tax benefits can empower Long Island retirees to maintain financial security and enjoy their golden years comfortably.
Smart Strategies for Long Island Seniors: Maximizing Savings and Aging Gracefully
Retirement planning frequently enough focuses on financial security, but for Long island seniors, navigating property taxes, housing costs, and healthcare expenses requires a multifaceted approach. Fortunately, several strategies can help maximize savings and ensure comfortable aging in place.
One often overlooked avenue is taking advantage of property tax relief programs. Long Island offers various options, including senior citizen exemptions and School Tax Relief (STAR) programs.Enhanced STAR, accessible to individuals 65 and older, provides significant tax savings, with an income limit of $107,300 for 2025. “People forget about these savings, it’s unbelievable,” emphasizes Kerlann L. Flowers, assistant professor of law at hofstra’s Maurice A. Deane School of Law and a real estate agent.”If they’re going to stay in the house, lower the taxes as much as possible.”
Another surprising piece of advice comes from Anoop Rai, professor of finance at hofstra’s Frank G. Zarb School of business. He suggests keeping your mortgage even if you reach 80 years old. “If you have a mortgage, chances are you have it at a very low rate,” Rai explains. “You’re better off keeping the mortgage even if you reach 80 years old, because why pay now? Put it in the stock market or a mutual fund.”
Rai’s reasoning stems from the historical resilience of the stock market. Despite economic downturns,the market has consistently delivered around 8% returns over 15-year periods. ”Stay in a stock market mutual fund if you’re about 60 or 65,” he advises. “Chances are you’ll live till 85. Sure, some people won’t, but their spouse is highly likely to live to that. Move to a long-term bond later as you get to 75,80.”
With life expectancy reaching 81.9 years in Nassau and 80.1 in Suffolk, according to the robert Wood Johnson Foundation, planning for a long retirement becomes crucial. However, it’s important to acknowledge that life expectancy for Black Long Islanders lags behind at 79 and 76.2, respectively, highlighting the need for tailored financial strategies that address these disparities.
For those committed to aging in place, proactive planning is essential. Consider making necessary home improvements now to avoid escalating costs later. This could involve moving a bedroom to the first floor,adding grab bars in bathrooms,or installing wheelchair ramps. Exploring creative solutions like creating a rental unit within your home, taking on roommates, or welcoming a boarder can also contribute to financial stability while fostering a sense of community.
“It sounds like something from back in the day,but people still do it,” Flowers notes,emphasizing the enduring relevance of these strategies.
Can Your Home Finance Your Retirement?
For many, the idea of retirement conjures images of relaxed days, newfound freedom, and financial security. But navigating the financial landscape of retirement can be complex.One often-overlooked asset with significant potential is your home. “The house becomes like a bank, an anchor,” explains Craig Ferrantino, a certified financial fiduciary based in Melville. “You could pull equity out of the house. If you had to,you also have the ability to have a reverse mortgage.The medical system is set up so that instead of putting you in a nursing home, they don’t mind that you stay in your own house.”
Ferrantino highlights the dual nature of your home in retirement: a comfortable haven while also offering financial flexibility. Options like reverse mortgages allow homeowners to convert a portion of their home equity into cash,providing a potential stream of income. Ferrantino notes that reverse mortgages come with drawbacks, such as high interest rates, significant fees, and the obligation to repay the loan, typically from the proceeds of a home sale, upon the borrower’s death or relocation.
Home Equity: A Double-edged Sword
Two other options for leveraging home equity include home equity loans and a home equity line of credit (HELOC). Home equity loans function similarly to customary loans,requiring repayment over a set period.A HELOC, on the other hand, resembles a credit card, allowing access to funds as needed, with interest charged only on the borrowed amount.However, both options carry the risk of foreclosure if repayment is not managed diligently.
While leveraging your home’s equity can be tempting, it’s crucial to approach these options with caution and careful consideration. Ensure thorough research,consult with financial advisors,and understand the potential implications before making any major decisions. Your home is a significant investment, and navigating its role in your retirement strategy requires thoughtfulness and planning.
Navigating Long Island’s Hot Real Estate Market in Retirement
For those nearing retirement or already enjoying it, Long Island’s real estate market presents a unique set of opportunities and challenges. The island’s limited inventory, with a recent count of approximately 5,100 homes and condos excluding the East End, represents less than half the number available in the third quarter of 2019.This scarcity has driven up prices, perhaps leading to significant profits for homeowners looking to sell.
“If you’re going to sell the house,right now is a great time to get on the market,” said real estate expert [Name of Real Estate expert], “We still have no inventory on Long Island. By getting ahead of your competition,you always historically end up with more money in your pocket because you don’t have as many houses to compete with.”
However,this seller’s market also means increased costs for prospective buyers. Homeowners contemplating a sale must carefully consider all factors involved in their next move. This includes evaluating the total cost of ownership,encompassing not just the mortgage but also taxes,maintenance,and potential improvements.
“Long Island is ’a great place to live, but it has to work for you financially,'” advises certified financial fiduciary Craig Ferrantino. “We have to go through the numbers as we’re considering retirement: What’s it going to cost you to live?”
Downsizing can be a viable option for empty nesters who find their current homes too large and demanding to maintain. Others may choose to explore 55-plus communities or relocate to different states.
The decision to sell, buy, or rent should be made with a thorough understanding of the current market dynamics and a clear vision of your long-term financial goals.
Planning for Retirement: Navigating the Golden Years
As the finish line of your working life approaches, prepping for retirement becomes a top priority. This transition, while exciting, can feel overwhelming.
Financial experts emphasize the importance of planning early and thoroughly. First and foremost, take stock of your current financial situation.
“Let’s look at your expenses, future expenses, not just your current cash flows, but your projected future cash flows. And let’s do some projections on that,” advises a financial advisor.
Once you have a clear picture of your spending habits, you can start exploring different options for housing, healthcare, and leisure activities during retirement.
it’s crucial to address potential healthcare expenses, as retirees often find themselves spending more on medical bills than on housing.
“Surveys have shown that retirees are spending more and more money on healthcare, and it’s beating both the mortgage or rental expenses and also it’s creeping up on other expenses,” notes Rai, adding that he knows retirees who moved to Europe to save on the cost of prescription drugs.
Navigating these complex decisions doesn’t have to be a solitary endeavor.
“Everybody has to work in concert and you’ll be in good shape,” advises Holdreith. “You’ll be able to plan and figure out if it’s here, you’re getting off the island, moving out further out on the island or maybe moving back into the city.”
Remember,the goal is to secure your financial well-being and enjoy the freedom and flexibility that retirement offers. As Peshkur, a strong advocate for early retirement, puts it, he looks forward to enjoying “spending time with my wife, fishing, traveling, gardening, and doing home improvements – while we…”
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