It happens to everyone at some point — retirement! Many look forward to it while others do not. But these are retirement tips everyone should know about. Planning ahead can make the whole process easier for anyone. It can help make retired living easier, and it can make the process of easing into retirement simpler.
Here are 10 things you should pay attention to before you retire:
1. Reduce your debt. If you carry debt into your retirement, you will have more stress and more commitments. That can make it harder to do the things you want to do. Try to get rid of your credit card payments and personal loans and car payments.
2. Set up an emergency fund. You should have a savings account just for emergencies so that you don’t have to dip into your investments.
3. Make sure you have enough insurance. You should be able to cover auto insurance, health insurance, and homeowner’s insurance, and you should reassess your needs as necessary. Find out if your insurance from your employer will cover the same things it does now, after you retire.
4. Have an income plan for your retirement. Make sure you know what you need to live on and how much money you will have coming in. Don’t underestimate your life span!
5. Speak to a social security representative. The rules change and they can be difficult to understand, so speak to someone at least a year before you plan to retire to make sure that there have been no major changes.
6. Take advantage of savings plans offered by employers. If your employer does not offer one, then set one up yourself. Depending on where you live, your government may offer different savings plans that are only available for retirement purposes, and they may have other financial benefits.
7. Have a valid will set up. This will protect your assets and it will also make it easier for your children, should anything happen to you. Keep it updated and review it at least once a year.
8. Consider an IRA (Individual Retirement Account). The sooner you start doing this the more you will save and the bigger the tax savings.
9. Educate yourself on the basic investment principles. If you understand these, you will have a better understanding of how much money you will have after you retire.
10. Learn about medicare. Find out if it applies to you and when you should apply for it. There are several types of medicare, so speak to a representative before you actually need it.
If you follow these retirement tips, you will be more likely to have a smooth transition into your retirement years!
