When you're planning for retirement, it can be easy to get lost in a sea of advice and information. It's understandable that you might worry about one mistake costing you a comfortable lifestyle once you reach retirement. But if you follow these eight steps, you will be well on your way to planning a stable retirement
Estimate your life span. How long did your parents live? Or are they still alive? What about inheritable genetic conditions? How is your lifestyle and current health? Many retirees underestimate their life spans and find themselves running out of money toward the end of their lives. Remember it's better to have too much money than not enough – so estimate high.
Plan to work. Once your career ends, you might find yourself feeling bored and unsatisfied. Many retirees report higher levels of satisfaction after taking on a part time job. You may be able to find work in a field that always interested you, and you can boost your retirement income by a few thousand dollars – or more – each year.
Wait to claim Social Security. Try to wait until full retirement age (65 to 67, depending upon your year of birth) to claim Social Security. If you claim your benefits early, your checks will be permanently reduced. If you file your claim later, you can earn a bigger check for each year that you wait beyond full retirement age, up to age 70.
Sign up for Medicare on time. Remember to enroll in Medicare when you turn 65, or you could face a late penalty. In fact, you can apply for your benefits starting three months prior to your 65th birthday.
Streamline your finances. If you hold multiple retirement accounts, it can become difficult to keep track of your money. Many retirees choose to roll everything into one account at retirement. It makes for easier accounting, leaving you more time to enjoy your new laid-back lifestyle!
Account for the cost of health care. The average man retiring today can expect to spend $116,000 on his medical expenses throughout the rest of his life. For the average woman, the cost is estimated at $131,000. Make sure you have enough money to cover out-of-pocket costs not covered by Medicaid.
Consider the cost of long-term care. Did you know that Medicare does not cover most of the cost of long-term care? No one should bet on having good health forever. Consider purchasing long-term care insurance, or make sure you have plenty of money set aside in your retirement account to cover the cost of a nursing home.
Make sure you get everything you deserve. Did you know there is over 280 million dollars' worth of unclaimed pensions out there? The Pension Benefit Guaranty Corporation holds onto these forgotten pensions, from employers who went out of business or whose former employees forgot to claim their benefits. Check with your old employers to be sure you aren't missing out on some money!
This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
14487 - 2015/5/13
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