It’s simple to be enthusiastic about retirement, particularly if it’s approaching quickly. But it is also essential to enter retirement well-prepared. So, if you’re within three months of concluding your career, here are some important steps to take.
1. Calculate Your Estimated Monthly Social Security Benefit
Social Security could wind up being an essential and reliable source of retirement income for you. Therefore, it is essential to know what monthly benefit you intend to collect.
It is simple to determine your monthly Social Security payment. Simply consult your most recent earnings statement to determine your estimated monthly benefit. And if you don’t have a copy, you can access it on the Social Security Administration’s website by creating an account. Note that if you retire prior to age 60, you may have never received one of these statements in the mail, as they are typically sent only to those 60 and older.
Keep in mind that you cannot apply for Social Security until age 62, and filing before complete retirement age will reduce your monthly benefit. Therefore, if you retire at age 60, you will have to wait before receiving these benefits.
2. Determine How To Manage Your Savings
With any luck, you will carry some savings into retirement. Whether you have $250,000 or $2 million, it is essential to manage your trust fund strategically.
Establish a withdrawal strategy so you know how much money you can safely withdraw from your retirement accounts each year without jeopardizing your savings. Ensure that your retirement resources are invested appropriately. This may necessitate switching to slightly safer assets if you are still significantly invested in equities.
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3. Develop Plan For Health Insurance
Numerous individuals obtain health insurance through their employers. This will likely not be an option once you retire, so you’ll need to determine what your healthcare coverage will entail and how much it will cost.
If you retire at age 65 or later, you are immediately eligible to enroll in Medicare. However, if you are youthful, you will require a secondary plan. This could involve joining a spouse’s plan if they are still employed and you have the option. Alternately, it may involve paying for a few months of COBRA, which will enable you to keep your former employer-sponsored plan. This option may be appropriate (albeit expensive) if you are retiring at age 64 and need only temporary coverage until Medicare becomes available.
In either case, ensure you are aware of how you will obtain coverage and the impact it will have on your income. Healthcare is typically one of the largest expenses for retirees, so it is essential to be prepared.
Take the time to complete these three tasks as you prepare to officially retire. They may prepare you for success as you enter this new and thrilling phase of your existence.
If you’re like the majority of Americans, your retirement savings are several years (or more) behind. Nonetheless, a handful of little-known “Social Security secrets” could assist increase your income in retirement. For instance, a simple technique could net you an additional $21,756 per year! Once you learn how to maximize your Social Security benefits, we believe you will be able to retire with the confidence and tranquility we all seek. To discover how to learn more about these strategies, please click here.
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