Making a list of everything you want to do in retirement is a fun way to help you envision what you want your retirement to look like. On the other hand, making a list of things you need to do before you retire may not be as exciting, but it can help you make sure that you are able to meet all of the goals on your retirement wish list! Get ready for the days ahead by tackling two more tasks in our retirement checklist:
- Pre-retirement task #3: Consider your income sources.
While most retirees will have an income foundation provided in part by Social Security benefits, fewer U.S. workers will draw a pension, and many people will have to structure an asset withdrawal strategy in order to supplement their other retirement income sources. This approach needs to be made carefully, often with professional help, to help ensure that you can maintain your lifestyle throughout retirement.
- Pre-retirement task #4: Organize your expenses.
Many near-retirees wait until they’ve paid off their mortgage and any other major expenses, such as student loans, before making the leap to retirement. Entering retirement with low fixed expenses will take some financial pressure off daily living, so it may be a good idea to ditch the big expenses now. Keeping costs low can mean extra cash for travel and leisure, or to pass on to your family.
- Pre-retirement task #5: Plan for long-term health care costs.
Planning for the complications of old-age related health issues is an uncomfortable yet necessary task. While the needs are often unpredictable, planning for long-term health care expenses can save you and your family members some future stress. There are a variety of options, including long-term care insurance, as well as long-term care benefits from optional riders on life insurance or annuity products.
Completing this last step, in conjunction with the other 4 steps can help put you well on your way to achieving the retirement you desire.