Planning for your retirement should be a priority if you want your post-work years to be comfortable. If your on your 30’s or 50’s, you must not sit back, relax, and passively wait for your golden years to come. It is always a smart move to talk with a trusted financial advisor from Lockheed Martin or other retirement-planning companies.
The financial expert will help you pick the right retirement account, give you advice about investments, and help you become financially ready during and after the transition. Aside from seeking professional guidance, here are things you must do before leaving your work for good:
1. Make your debts retire before you do
If you’re like most retirees, you will be on a fixed income and might find it challenging to pay high-interest fees to your creditors. According to a report from Federal Reserve, 35% of retirees ages 65–74 say that their home loans are still their financial priority. Others are still paying off debts from credit cards, medical bills, or student loans.
To reduce the burden, you need to take one step at a time to manage your mortgage ahead of retirement. It would be best to prioritize your credit card repayments because it has high-interest rates and revolving balances. The moment you hit your 50’s, remind yourself that an earlier-than-expected exit is possible. This is because you can never predict health issues or job layoffs.
Whenever possible, do not take out new, late-career loans. Aside from a retirement account, you can consider building up an emergency fund worth six months of your salary. This fund will cover unexpected costs, so you will not be forced to commit to another debt.
2. Remember that medicare might not cover everything
While you are eligible for Medicare once you reach the age of 65, this government program will not include every health need. For instance, you might need to pay for long term home care, dental, vision, and prescription costs from your pocket. You also need to remember that health-care costs inevitably rise as you age.
Experts estimate that a retiree’s health care spending can range from $280,000 and goes up depending on the health condition. Thus, you need to save like crazy for your health care while you still can.
3. Decide how you’re going to fill your time
Most people do not pay much attention to how they will spend their unlimited time during retirement. So they find it hard to adjust with lots of hours to fill every week. They grow bored, restless, and depressed. Avoid this fate by deciding on the things you’ll do during retirement. Depending on your personality and preferences, you can travel, get a part-time job, start a business, volunteer, or take classes.
If you want to retire comfortably, do not make the mistake of planning when you’re too close to retirement. Procrastinating will leave you with two choices; continue working or get by to pay for necessary living expenses. Either way, you will be struggling instead of celebrating your golden years. Proper planning is the key to live the retirement of your dreams.