If you’re retiring soon, you’re probably hoping that years of hard work and long hours are about to be rewarded. To get the best out of your retirement and enjoy peace of mind as those final days of work loom, it’s wise to prepare in advance. Here’s an 8-step checklist to ensure you’re ready for retirement.
- Take stock of your financial situation
If you have multiple accounts, you have credit cards, savings, and a retirement fund, it’s very easy to lose track of your financial situation. Before you retire, it’s a good idea to simplify your financial situation by transferring small amounts of money to a single account and consolidating savings into one fund.
- Decide when to take social security payments
Social security payments are available from the age of 62, but it usually pays to wait so that you can enjoy the benefits on offer. If you’re not sure when to start collecting your social security payments, it’s worth talking to an expert like a financial advisor in Newtown PA.
- Set up a meeting with your company’s HR department
As you approach retirement, it’s hugely beneficial to be clear about what will happen when you leave work. Organize a meeting with HR to discuss any benefits you are entitled to as part of your employment package, any days of leave you are owed and your options in terms of your pension payout.
- Set money aside
Most of us have an idea of when we’re going to retire from a relatively early age, but the majority of us don’t have rigorous financial plans for our retirement. Start setting money aside as early as possible to boost your pension and ensure you have access to funds once your paychecks cease. It’s always good to have an emergency fund available.
- Get to grips with debt
Ideally, we would glide into retirement without a financial worry in the world, but many people retire in debt. If you’re on top of your debts, for example, you’re paying back a mortgage and you’re up to date with payments, there’s no need to worry. However, if you have outstanding debts that are costing you money in interest or fees, it’s beneficial to try and eliminate them as quickly as possible while you have a steady income.
- Start looking into Medicare
Medicare is a complex system, which can be difficult to negotiate. This is why pre-retirement planning is so useful. Take a look at Medicare guides, seek advice, and make sure you understand what you’re entitled to and how you enroll once you’re eligible.
- Set some retirement objectives
Before you retire, think about how you want to spend your retirement, and figure out how you’re going to achieve your objectives. You might have very low-key plans, but in contrast, you may be considering moving or traveling extensively, which require a degree of forwarding planning. If you know what you want to do, you can organize your finances to facilitate achieving those goals.
- Ensure your estate is in order
Nobody wants to dwell on the thought that one day, they won’t be here anymore, but this is an eventuality we all face. With retirement on the horizon, it’s wise to ensure your estate is in order.
If you’re looking forward to taking it easy in your retirement, start working through this checklist today!