The prospect of retirement can be quite exciting, especially if your own retirement date is right around the corner. At the same time, many soon-to-be retirees find themselves anxious or worried about their finances post-retirement. Fortunately, there are some steps you take before you retire to give you added peace of mind as you approach your golden years.
- Know How Much You Need
Start by making sure you’ve accurately calculated your financial needs for your post-retirement. While you may not be able to pinpoint exactly how much money you’re going to need to live on, you can get a good idea by doing some careful calculations. Be sure to take into account the specific lifestyle you plan on living after retirement, as well as the cost of living where you plan to retire. From there, also factor in money you’ll receive from cashing out pensions, withdrawing on Social Security (if applicable), and drawing on your retirement account.
- Create a Spending Budget
In addition to knowing how much money you’re going to need, you’ll also want to create a detailed retirement budget that will provide you with a general guide on how much you can afford to spend on a monthly basis once you retire. Take some time to assess your current spending and where your money is going, then compare it with the monthly income you’ll have when you retire. If necessary, make some cuts to your budget to ensure you’re not in-the-red.
- Explore Social Security and Medicare
Now is also a good time to get a grip on Social Security and Medicare; specifically, if you’ve been paying into Social Security, you’ll want to make sure you know how much you’ll be receiving in monthly income and how to go about withdrawing it. Once you hit age 65, you’ll also need to gather any necessary paperwork to apply for Medicare in order to retain medical insurance, so don’t wait until the last minute to become familiar with this.
- Re-Visit Your Investments
As you near retirement, it’s also a good idea to re-visit your investments and shift towards lower-risk options. This will help give you added peace of mind as you prepare for retirement while still earning you a return.
Looking for more advice on preparing for retirement? Sterling Group United is here to help. Contact us today to get started.