The Finance Blogger

Things To Do Before You Retire

Things To Do Before You RetireMany retirees assume that life will be grand after they retire. They will have lots of time and money available in retirement to do the things they have always put off while working. This can be true for many but it does not automatically happen that way for many people. There are five factors that many people should consider before they retire. What are the five things to do before you retire? Our list was developed after reading many articles and doing a great deal of research as part of our own retirement planning.

Things To Do Before You Retire

Assess Your Savings

The first step is to assess your savings now and what it will be when you actually retire. If for example, you have $400,000 saved and feel that this is a huge nest egg, is it enough? Using the standard 4% rule, your income would only be $16,000 a year. Can you live on that? What other sources of income will you have? Add these up and assess whether it is enough to live the live you would like during retirement.

Develop a Retirement Budget

The next item on our list of things to do before you retire is to develop a budget. You have already determined what your income will be. Now how will your expenses change. If you have plans for your retirement, don’t forget to factor these in. Upgrades to the house, travel plans etc. should be considered in addition to all of the usual expenses. Don’t forget major maintenance projects for your home. Will you need a new roof in five years? How about the furnace or AC units? These major expenses along with any others should be factored in.

Understand Health Care Costs

As we age, health care and nursing home care can make a substantial impact on your budget. Do you have health care coverage? How will you pay for medications and other medical equipment you may need. Know and understand what the costs will be.

When Will You claim Social Security

The amount of social security you receive depends on two major factors. The first is how long you have worked before retiring and how much you made. The second factor is when you start collecting social security. The earlier you claim, the less you will receive. If you can wait longer to claim security, your income will be higher. Factor this plan into your budget plans.

What will You Do With Your Time

Many people mention they will have more time to golf, to pursue their favorite passions, travel and take on various maintenance projects. Will this be enough? Remember that your going to have between 8 to 10 more hours a day to fill taking into account commuting time. Take a moment to think about what you may do in retirement. It could even include going back to work, part time work, or even volunteering.

Good luck in your retirement and we hope these things to do before you retire will help you in your own retirement.

(Visited 59 times, 1 visits today)

You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

AddThis Social Bookmark Button

Leave a Reply


Web Content Development