When you spend the time, energy, and discipline solidifying a game plan for your golden years, getting ready for retirement can be exciting! As you prepare to wind down your last few working years (or months), there are a few things experts suggest you consider before you officially make the transition.
Make sure your budget is retirement-ready
Begin by determining what your retirement income will be, including how much you expect to receive from Social Security and what you plan to withdraw from your investments on a monthly basis. This way, you can avoid overspending during the early years of retirement.
Plus, changes in lifestyle may impact your healthcare regimen, including your hearing care. Changes in your social life, exercise routine, or taking up a new hobby where you’re interacting with more people could mean it may be time to consider updating your technology to accommodate your new habits.
Take action while you’re still working
There are a few things you can do to throttle your savings before retirement, including catch-up provisions. “For those 50 years of age and older, the IRS allows a pre-tax deferral of $24,000 into an employer-sponsored retirement plan,” says Daniel Zajac, partner with Simone Zajac Wealth Management Group.
Time your retirement strategically
Experts recommend that you consider staggering retirement with your partner instead of retiring at the same time.
“It is fun to think of retiring together and immediately embarking on your elaborate travel plans, but if you stagger your retirement, more of your retirement assets will stay invested,” writes Carla Dearing, founder and CEO of online financial planning service SUM180. Plus, you and your partner can continue to take advantage of company insurance benefits and coverage—a significant asset as you cut down your spending in other areas.
Considering moving into a smaller house? Be careful when it comes to making this big decision, writes Ann Brenhoff of Huffington Post.
“There are substantial expenses involved in selling your house and buying a new one; paying a real estate agent a six percent commission is a big chunk of change,” she advises. Additionally, moving fees, air conditioning costs (if you’re moving to a warmer environment) and the cost of travel to see loved ones can all add up, turning a well-intentioned “downsize” into a lateral move instead of an upward one, especially if you’re currently mortgage-free.
Connect Hearing offers hearing aids for all budgets and lifestyles. Call 281.671.9626or visit www.ConnectHearing.com and get your hearing retirement-ready with a free hearing evaluation.