If you’re within a decade of retirement, there are several things you can do to make sure your golden years are just that: golden. Review your income sources and make necessary adjustments, if needed. You may also want to take these other steps to prepare for a smooth transition into retirement.
Start by looking at your savings and investments. Are they allocated in a way that will provide enough income once you retire? Consider working with a financial planner to create or update your retirement plan. This is especially important if you have multiple sources of income in retirement, such as Social Security, a pension, and 401k withdrawals.
Another key factor to consider is healthcare costs. According to the Employee Benefit Research Institute, a 65-year-old couple can expect to spend an average of $285,000 on healthcare costs in retirement. Make sure you have a solid understanding of your health insurance options and coverage as you approach retirement age.
You’ll also want to think about your living situation. Do you plan to downsize or move to a cheaper area in retirement? This can free up extra cash that can be used for travel, hobbies, or other fun activities during retirement.
Next, take some time to consider your lifestyle in retirement. What do you want to do with your time? How active do you want to be? Answering these questions can help you make decisions about where to live, how much money you’ll need, and what type of health insurance to purchase.
Here are other practical tips you can do to plan for your retirement:
1. Make a budget and stick to it. This is important whether you’re still working or have already retired. Try to anticipate how much money you’ll need each month to cover your expenses, and be sure to account for things like healthcare costs and inflation.
2. Invest wisely. One of the best ways to ensure a comfortable retirement is to invest your money wisely. There are many different investment options available, so be sure to do your research and find one that best suits your needs.
3. Stay healthy. This may seem like common sense, but it’s important to stay healthy in order to enjoy your retirement years. Make sure you’re getting enough exercise and eating a balanced diet.
4. Keep learning. Retirement is a great time to learn new things and explore new hobbies. There are plenty of classes and activities available for seniors, so be sure to take advantage of them!
5. Have fun! Retirement should be a time to relax and enjoy yourself. Plan trips, spend time with family and friends, and do whatever makes you happy.
If you’re taking the time to plan for retirement, congratulations! It’s a big step that will ensure a smooth transition into your golden years. By thinking about all the aspects of retirement, from income to healthcare costs to lifestyle, you can make sure that your retirement is everything you hoped for.