The number of retired persons in the United States is expected to almost double in the coming years. If you’re close to retiring or you’re thinking about retirement planning, consider some of these retirement tips to cover yourself from all angles.
1. Plan Your Income – Create a written budget that outlines your cash flow now as opposed to how it will be when you retire. Write down expenses you know you’ll have when you retire and how much income you expect from your retirement accounts, Social Security and disability. Your income should exceed your expenses.
2. Social Security Application – Contact the Social Security Administration to receive an “Estimate of Entitlement.” This outlines how much you’re expected to receive from Social Security payments.
3. Plan for Healthcare – Learn about Medicare, what it does and does not cover, and what out-of-pocket expenses you can expect to incur.
4. Long-Term Care Insurance – One of the most overlooked retirement planning items is long-term care insurance. This can help you or your spouse if you require assistance or special care during retirement. Consider using companies that offer lump sum payments so you don’t have to worry about premiums while you’re living on a fixed income.
5. Establish an Emergency Fund – Your emergency fund isn’t something you use for your day-to-day expenses. Instead, it is there in case a hard time arrives, unexpected medical expenses show up or you have home expenses to take care of. Your estate planning attorney can help you plan for unexpected emergencies during your retirement planning.
6. Update Your Estate Plan – If you already have an estate plan in place, it’s time to update it so that it reflects your retirement planning. Include beneficiary updates to retirement accounts, have a power of attorney and update your healthcare proxy documents.