The decision to retire is personal, and some people fear that they’ll never know the right time. Without a steady income and day job, many people feel like they lack a sense of purpose and develop anxiety about the future. But retirement can also be an incredible opportunity to celebrate all your hard work throughout life and explore new interests.
Retirement is really just the beginning of a new chapter in your life story. Planning ahead now will help you prepare to make the choice at the right time for you.
Plan Your Expenses
Consider your average monthly expenses after retirement. Do you own a house with a mortgage that’s paid off, or would you like to relocate somewhere? If so, it may be a good idea to start looking into moving before you retire.
Even if you are retired and collect social security benefits, you’ll still have to pay taxes. Make sure that you can reasonably afford to cover your expenses along with taxes and other needs. If not, start saving as much as you can now. Open an IRA and make payments. Even 10 years can make a difference.
You may also enjoy work and decide that you’ll keep a part-time job after retirement. Consider your options for that as well and start exploring hiring opportunities before you quit your day job.
Leaving a Will
No one likes to think about death, but a will is something every responsible adult should have. A will can take the guesswork out of grief for family members wondering what your last wishes would be, and if you have a sizeable estate, it’s especially important that you leave specific instructions on how you would like your wealth distributed after your passing.
In addition, setting up a trust will help your beneficiaries avoid the costly probate court process. Working with a reputable legal firm like Jacoby & Meyers will help you navigate the process easily and ensure everything is addressed to your liking.
Will you keep your own private insurance after retirement, or do you intend to use Medicare when you’re eligible? Learning about different types of Medicare will help you provide for yourself and care for your needs.
Standard Medicare does not include prescription drug coverage, so if you require medication or live with any chronic conditions, you will have to consider adding a Medicare Part D plan to your coverage.
Medigap also allows you to lower the cost of Medicare insurance through a third-party provider. Exploring all of these options, weighing the pros and cons of each and determining which health services you need the most will help you navigate your health during the early years of retirement.
Making the decision to retire is a tough call, but early planning can make the choice much easier. With these tips in mind, you’ll be able to protect yourself and plan a happy future.
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