After working tirelessly for over 30 years, the dawn of retirement starts glowing. You start looking at your finances, wealth, assets, earnings, and retirement kit, and you realize that you haven’t done enough. The years you worked should have set the path to financially free yourself from the qualms that come with old age. While many people enter into retirement, only a handful of them are prepared to hit the next phase of retirement comfortably. This means a big number of them will still be struggling to make ends meet. While the entire period you have been working is crucial in determining how well or poor you have secured your future financial needs, the last 12 months can make a big difference. Here are six things you would want to do before you retire.
Set a sensible retirement budget
List all your expenses including the fixed and discretionary ones. You may want to use the Fidelity’s free retirement planner worksheet or some other available tools. This places you in a position to know where you stand and how safe you are in spending. This will depend on your financial nest egg and your age.
You know that the paychecks that have been coming every month for the past decades you have worked are just about to come to a halt. It’s a completely new experience and life, but you have to take it head on. Start raising cash and fund at least a year of expenses.
Hold off in tapping your Social Security
While you may claim your Social Security starting at the age of 62, it may not be the right time yet, not even at 65. You may want to hold on until you are 70, that way, your checks may be bigger by close to 76 %.
Determine how you pay for health care
You may want to find out if your employer offers long-term care, retirees medical care, and some other insurance coverage. In case, you haven’t joined Medicare, it is time to do so. You can still register up to three months before your retirement age, that’s 65-years.
Check your wills and trusts or powers of attorneys
While a will is important, it may not be sufficient to protect your wealth and assets or reduce the estate taxes and related costs. You would want to consider setting up a trust. Ensure that your financial planner reviews your powers of attorney, trust, will, beneficiary designations, and all of your investment plans to make sure your assets are protected.
Finance your mortgage and do major repairs
You do not want to continue paying off your mortgage after you retire. It is crucial that you check the mortgage statement and accelerate the payments to complete them before retirement. The sooner the better. And, if there are repairs in your home that you might want to do in the next 20-years, just carry them out now.
The period before your retirement is the right time to put things in order by looking at your healthcare, finances, assets, investment, and retirement budget. Making a few shifts in priorities and focusing on them can make some difference on how you are going to lead the golden old age days.