For many people, retirement proves to be the best time of their lives—you have all the time in the world, plenty of money and still some good health left to enjoy life to the fullest. However, in order to have a good retirement, you need to prepare for it before the moment comes. If you’re soon-to-be retired, here are a few things you need to do (and know) right now:
Check the numbers
This can be quite scary, but so important: make sure to have a thorough review of your finances. How much money have you managed to save? Do you have an income plan for your retirement? What about upcoming tax changes in retirement? Do you know your healthcare costs? Crunch the numbers and it will save you a lot of issues in the future. There are practical retirement income calculators and social security calculators to help you with your numbers if you don’t have any previous experience.
Have some money on the side
Every retiree needs to have a good retirement fund, but what about emergencies? An emergency fund is there to handle any unforeseen things in your family, and it can literally save your retirement. It’s best to have at least six months of income in your rainy day fund to cover costs like insurance, housing, and other costs or delays in your payments. If you decide to retire early, your emergency fund will help you get over the period between your paycheck and your regular IRA or 401(k) fund.
Create your retirement budget
For most people, their superannuation is the thing that keeps them going through their retirement. But it’s important to start planning now if you want to have enough money when you stop working. Those planning to retire soon or in the next few years might want to estimate how long their money will last. Most Australians choose to use super and retirement planning calculators to figure out different retirement products. It’s also smart to contact expert Australian superannuation & insurance lawyers and ask for advice. This is your first time retiring, so it’s only natural to need help with the process. Pros will combine your accounts, review your insurance and check your investments.
Examine your life insurance policies
In many cases, employers offer life insurance through their benefits, but once you retire, this coverage is often lost. And in order to keep your beneficiaries safe and secure, it’s smart to sign up for new life insurance in retirement. This doesn’t have to be the first thing you do to prepare for retirement, but it will certainly allow you to sleep more soundly, knowing your loved ones will be able to pay for major costs after you’re gone.
Check your housing needs
You might love your current home now, but what about in 10 years? Will it be suitable to support your changing needs? Will you be able to move around comfortably as you age? Maybe you want to be close to your family and friends as you live your best retired years. Also, it’s important to consider the mortgage. All of these things should be considered before you retire and settle down forever. If you’re thinking about downsizing or moving, it’s best to do it while you’re still working because lenders are much more eager to provide loans to people with income.
Consult with an expert
If everything we’ve mentioned so far is very stressful and confusing, don’t hesitate to set some money aside for a good financial advisor. A professional advisor can help you make the right decisions when it comes to retirement accounting, investment advising and creating a budget. There are also professionals for retirement planning who can organize your assets and incomes and create easy-to-follow monthly payments.
We all might be looking forward to retirement, but not many of us are happy about retirement planning. However, as soon as you start this chore, the better your retirement plan will turn out and the more comfortable your upcoming years will be.