Retirement is supposed to be something to look forward to. Yet some baby boomers that are approaching retirement age are doing so with a sense of uncertainty. Do they have enough saved up to make it through their retirement years? How will they keep themselves occupied? What happens if they need long term care?
Even if you’re excited about retiring, it’s crucial that you plan for it properly. Failure to do so could leave you scrambling to make ends meet at a time when going back to work is not an option.
Here is some advice and tips that will help you make the most of your retirement and keep it as stress-free as possible.
Consider working past retirement age. If you’re in doubt about whether or not you’ve got a big enough nest egg saved up, staying at your job a few more years will allow you to put away some more money. Even if you’ve got plenty of money saved up, maybe you enjoy your work and just aren’t ready to leave. Just because you can retire at 65 doesn’t mean you have to, and it never hurts to have a little more financial security.
Avoid getting too conservative with your investments. It’s true that your risks should decrease as you get older, but you need to keep some high return investments in your portfolio in order to stay ahead of inflation. Financial advisers recommend that you keep around 50% of your investments in stocks, but that number may vary depending on your pension, current savings and other factors.
Carefully plan your retirement account distributions. If the market is weak, you may need to take less than you’d like until it recovers. Otherwise, you run the risk of your savings not seeing you all the way through retirement.
Create a budget. When you’re on a fixed income, you need to keep your expenses as low as possible in order to stay afloat. Finding ways to cut back on spending will reduce stress and help keep your retirement fund as healthy as possible. Consider trading for a smaller and more efficient car, selling your home and buying a smaller one, and limiting luxuries such as dining out.
Make it a point to sign up for Medicare on time. If you don’t, you’ll have to pay higher premiums when you do sign up. The open enrollment runs from three months before to three months after your 65th birthday, unless you continue to work full-time and have insurance through your employer. In that case, open enrollment begins when you stop working.
Take care of the things that Medicare doesn’t cover while you still have other insurance. Medicare won’t pay for dental care or eyeglasses, so it’s wise to get your eyes checked and have any needed dental work done before you officially retire.
Retirement seems so distant when we’re young, but as the years go by, it has a way of sneaking up on us. Being prepared for it will make for a much easier transition. With a little planning, retirement can be just as happy and carefree as you envisioned it.
Tags: baby boomer, baby boomer retirement, retirement advice, retirement planning