8 Steps to Retirement Success

Retirement

8 Steps to Retirement Success

Posted by Infinite Wealth Advisors, LLC
4 years ago | May 25, 2015

senior couple driving motorcycle with dynamic backgroundAs you’re planning for retirement, it can be difficult to keep track of everything you need to do. You may also question whether you’ve really saved enough money to retire. Follow these eight steps to retirement, and you can start this new phase of your life on a firm footing.

Don’t underestimate yourself. One of the primary reasons some people find themselves running out of money in retirement is that they have underestimated their own life spans. Make sure you have enough money to truly last you the rest of your life. Today’s retirees often live for 20 or even 30 years after they stop working.

Don’t quit work entirely. Most retirees actually find themselves feeling a bit bored once they quit their 9-to-5 jobs. Taking on a part time job keeps you active and socially engaged in the community, and helps you earn a few bucks on the side, too.

Wait to claim Social Security, if you can. If you take your Social Security benefits at age 62, you will receive 76 percent less each month than you would receive by waiting until age 70. Of course, you may not be able to wait that long to claim your benefits. But for each year beyond full retirement age that you wait to file for Social Security, you can net a larger monthly check.

Consider consolidation. In some cases, it may be beneficial to consolidate all of your retirement accounts into one account. This will help you keep track of your money more easily as grow older.

Remember your Medicare deadline. You can apply for Medicare beginning three months before your 65th birthday. If you don’t sign up on time, you could be subject to a late penalty.

Look for old pensions. The Pension Benefit Guaranty Corporation holds about 280 million dollars in unclaimed pensions. Get in touch with old employers to be sure you aren’t forgetting about a pension that you are due.

Factor in the cost of health care. According to current estimates, the average retiree today can expect to spend $116,000 (for men) to $131,000 (for women) on out-of-pocket health care costs. Contrary to popular belief, Medicare does not cover everything you may need.

Remember to consider long-term care. Many retirees aren’t aware that Medicare does not cover most of the cost of long-term care. Yet nursing care does become a reality for most of us at some point. Purchase long-term care insurance, or set aside enough money in your retirement plan to cover the bills.

14468 – 2015/5/13

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