Retiring is the goal of every worker who dreams of leisurely breakfasts and time in the garden. However, getting to retirement takes some financial effort and strategic planning. The reality of having no job means that you’re on your own when it comes to every facet of your financial life. Before you send in that letter of resignation, get familiar with the top questions that you need to ask yourself before retiring. You’ll have less stress as a result of these well-answered questions.
What’s Your Plan For Healthcare?
When you’re working, your employer’s coverage keeps you healthy with reasonably affordable policies. All of that changes when you retire, however. Ask yourself if you have a plan for healthcare coverage. Ironically, the time of your life when you really need healthcare coincides with the lack of an employer’s policy.
Luckily, the federal government offers Medicare. From the moment that you turn 65 years of age, you can take advantage of this program. It covers the bulk of your medical needs, and there are supplemental programs for options that you care to invest in.
COBRA insurance coverage is possible between your employment period and signing up for Medicare, but it only lasts for up to 18 months. It can also be very expensive because the employer isn’t paying for part of the cost. Ideally, you’ll want to rely solely on Medicare while looking for supplemental programs to cover speciality items, such as vision.
What Will Your Income Include?
On average, Social Security will cover about 40 percent of your income in the golden years. You can start payouts as early as age 67, but many retirees choose age 70 because there’s a higher monthly payout as a result of waiting. Your retirement savings must cover the bulk of the remaining shortage.
Many financial experts teach the concept of the 4-percent rule. In essence, you can take 4 percent of your funds from a retiring account each year, and you should still have enough money to cover your remaining years. There are other calculations to consider, such as understanding how much money you’ll need each month in these relaxing years. Although some experts believe that you can live off of 70 or 80 percent of your previous earnings, it’s ideal to shoot for a comparable income as earned during your working days. With this tabulation, you have extra funds for hobbies and traveling.
Do You Have Plans For Your Time Off?
Planning for your golden years also means that you need to fill the time that is now open to you. Isolating yourself from your social network at work can be detrimental to your health. Make rough plans for your golden years because filling the time can be a rewarding prospect. Volunteer with charities, help out the family or get a part-time job. Working as a consultant with your previous employer might be an option that keeps you connected while still enjoying the spoils of retiring in your 60s.
It’s natural to try new things, but then you’re not too thrilled with them. Continue to explore as you grow older because you might find a hobby or talent that sparks creativity in your mind. Many retirees find themselves starting a business as they learn how to offer a product or service that counts in the neighborhood.
Stay updated with your retirement plan by logging into your funds regularly. By knowing how much you have and where it will be allocated gives you a clear view of your retirement pathway. Retire with confidence that your plans will stand the test of time as opportunities spread out ahead of you.
Investment Advisory Services offered through Retirement Wealth Advisors (RWA), a Registered Investment Advisor. Pennsylvania Wealth Management and RWA are not affiliated. Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.
This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Pennsylvania Wealth Management and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.
Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.
Million Dollar Round Table (“MDRT”) is a membership organization. Qualifying criteria for membership includes attaining specified levels of commissions earned, premiums paid or income earned on the sale of insurance and other financial products. MDRT membership requirements include the payment of annual dues, compliance with ethical standards, and maintaining good standing with an MDRT-approved professional association. The MDRT logo and/or trademarks are property of their respective owners and no endorsement of Jason Bergey or Pennsylvania Wealth Management is stated or implied. MDRT and Retirement Wealth Advisors, Inc. (RWA) are not affiliated.