Are You Prepared for Retirement?

Retirement will be here before you know it. Are you prepared? Use this short checklist to make sure you’re ready.

Create a Retirement Budget

When you have a plan, you’ll experience less stress and have more fun in retirement. Not to mention, a budget can keep you from exhausting your funds too soon.

Set aside time to review the last 6-12 months of bank and credit card statements to create your retirement budget. Include fixed expenses (essentials, non-essentials, and required monthly expenses), health care costs, and optional items (travel, hobbies, entertainment, etc.).

Understand Your Health Insurance Options & Get Healthy

If you plan to retire early, health insurance can be expensive. Before you give notice, come up with an accurate estimate of what you spend for health care now and what will change when you retire.

While you’re covered under insurance at work, use your annual preventive care visits and become as healthy as possible before you enter retirement. Schedule preventive exams for annual physicals and teeth cleanings now and commit to eating healthy, getting exercise, sleeping, and keeping your brain active through games and puzzles. Keep in touch with family and friends to maintain your mental and emotional health too.

Make a Timeline for Your Retirement Income

Do you know when your different sources of retirement income will begin? Create a chart or spreadsheet to line up your income timeline against potential retirement expenses. Knowing when income is coming in and going out can help you manage your cash flow.

Decide the Best Time to Collect Social Security

Waiting to retire until age 70 can have its perks by allowing you to draw the maximum Social Security benefit. If you’re planning for retirement with your spouse, you may consider who makes more money and then work a couple extra years to collect more Social Security.

If you are under age 66, start collecting benefits, and make too much, you may owe some of your Social Security back. Learn more about Social Security income limits to decide the best retirement age for you.

Don’t Forget About a Long Term Care Plan

Any solid retirement plan should include long term care planning. Your plan should include how and where you want to receive care and how you’ll pay for it.

Will long term care costs come out of your income or savings? Or will you buy insurance to cover the expenses for you?

Learn about the cost of care in your area to find out if care expenses can fit within your budget. To ensure you have the funds you need, speak with a Long Term Care Specialist to discover if Long Term Care Insurance (LTCI) is right for you.

Curious what LTCI costs? Run rates for the top carriers online.