For many people, the closer they get to retirement, the more concerned they get about whether they have saved enough or not. And it’s understandable. With life expectancy climbing and the ability to not only live longer but to do so with a higher quality of life growing as well, it stands to reason that some people will be a little uneasy when their last pay check gets ever closer. Are you one of those people?
As you approach retirement, it’s vital that you pay attention to key financial questions so you can Prepare for a Successful Retirement. Here are some of the items you should check:
Health Insurance. Are you among the lucky few who will continue to be covered after retirement? If not, you’ll need to replace the coverage. If you will be eligible for Medicare, you may want to start checking up on “Medigap” coverage.
Tip: Before you retire, take care of any non-emergency medical, dental, or optical needs (if your employee plan coverage is broader than Medicare).
Other Types of Insurance. Once you retire, you may need to replace employer-provided life insurance with extra coverage. You should also consider purchasing long-term health care insurance in case of a lengthy nursing home stay in the future.
Social Security. Decide whether you want to take early Social Security benefits if you’re retiring before your full retirement age. You can get 80% of your benefits at age 62.
Tip: For most people, taking Social Security benefits at their full retirement age makes the most financial sense. If you think you might need to take early benefits, be sure to discuss this with us.
Company Plan Payout. You should plan well in advance how you’ll take the payout from your pension plan or 401(k) plan. Will you transfer the funds to an IRA? How will the funds be invested?
Relocation. If you’re planning a move to another state, explore the financial ramifications of living there before you move.
Tip: If you’re relocating, it might be wise to buy the new home before retirement.
Let me Help. Retirement is an exciting time – but a little advance planning makes for a much smoother transition. Use this checklist, and contact my office for additional guidance. Also check out my Retirement Calculators.
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