How to Prepare Financially for Retirement
Introduction ď ˝
Do you have a minimum of three months worth of living expenses saved in a checking or savings account? Sometimes there are delays in the start date of pensions or Social Security. It is important to have savings you can rely on to cover your bills if you experience delays.
Tips to Prepare Financially for Retirement
Make a Retirement Budget Determine Your Health Insurance Options Run Scenarios Using Online Retirement Calculators Make a budget Review your insurance needs Pay off your debts Choose Pension Distributions Only After Analysis
Make a Retirement Budget ď ˝
Have you spent time analyzing your retirement expenses? Working through a before and after retirement budget is important. You must come up with an accurate estimate of what you spend now and what will change after retirement.
Determine Your Health Insurance Options ď ˝
Have you looked at how you will cover medical expenses and health insurance - and included these items in your budget? Health insurance coverage can be expensive if you plan on retiring early. Medicare begins at age 65 but on average expect it to cover only about half of your total health care expenses.
Make a Budget ď ˝
Have you spent time analyzing your retirement expenses? Working through a before and after retirement budget is important. You must come up with an accurate estimate of what you spend now and what will change after retirement. Underestimating expenses is one of the biggest retirement mistakes people make.
Make an Investment Plan ď ˝
Have you created an investment plan so you have a disciplined approach to follow throughout retirement? An investment plan is like a job description. Once you know the job you need your money to do for you it becomes easier to make the right hire.
Pay off Your Debts
Pay off your debts as soon as you can – ideally before you retire. To help you pay debt off faster, make sure you are paying the lowest interest rate you can get. Learn more about managing debt.
Choose Pension Distributions Only After Analysis ď ˝
If you have a pension do you understand your pension choices and know which one is best for you and your family? Pension decisions are irrevocable - meaning you cannot change them. These decisions should not be made without analysis.
Importance of Planning for Retirement
Who I Am‌ ď ˝
Randy Becker Financial is Retirement Professional who provides the great services related to income planning and retirement planning and currently CEO of the Becker Retirement Group .