Nearing Retirement
After working hard and saving throughout your career, you're just a few years from retirement. As you near this much-anticipated time of life, there are still a few details you need to take care of before you retire.
After working hard and saving throughout your career, you're just a few years from retirement. As you near this much-anticipated time of life, there are still a few details you need to take care of before you retire.
How do you want to spend your time during retirement? While doing nothing may sound lovely, the reality is active people are happier and healthier. Your plan should be fairly specific. Many retirees volunteer, work part-time or become more active in special interest clubs.
Your financial situation will be different once you retire and don’t have a regular paycheck. You’ll need to manage the money you have so it lasts. Transitioning from working and saving to retiring and spending may be smoother with a budget. Your projected retirement expenses should be less than your projected retirement income.
If you’re worried you won’t have enough savings for your retirement, there’s still time. Increasing your contribution rate by just 2 percent could make a significant difference in your account value at retirement. If your plan allows you to make extra catch-up contributions, that will boost your savings.
Your retirement income will come from a variety of sources, including your retirement plan, Social Security, and any other savings and assets you have. If you’re married, also consider your spouse’s retirement savings and Social Security benefits.
No matter how healthy you are, you’ll have some health care expenses during retirement. Once you turn 65 and you’re eligible, Medicare will cover many of your health care expenses. You’ll have to pay a premium for Part B coverage, deductibles, coinsurance, copays and premiums for any supplemental insurance you purchase. Make sure you earmark enough of your retirement savings for your health care costs.
Article is adapted from content provided by DST.
