How to Prepare for Retirement During Your Last Year at Work

Planning for retirement goes all the way up until the day you retire. If you’re one year away, you’re heading down the home stretch and should begin to start feeling excited. Your retirement day is drawing near. In order to completely prepare yourself for it, you should make sure the following are squared away:

Housing

It’s important that your housing situation be taken care of before your retirement begins. If you’re thinking about moving to a smaller place or different state, it’s important that you do it sooner rather than later.

Social Security

The time you begin collecting social security will impact how much social security money you get for the rest of your life. It’s important that you know when the best time to start collecting social security will be so that you maximize your benefits. Delaying social security is a great way to get extra retirement money.

Health Insurance

Medicare will begin to cover you when you turn 65, but don’t make the mistake of thinking Medicare will be enough. Before you retire you should understand what Medicare Plan A and B cover and what co-payments you will be responsible for. You should also look into purchasing Medicare Plan D, which is plan that covers all prescription medications. It’s usually a good idea to go to the doctor before your retirement. Use your current health plan to get dental, hearing, and vision treatment, as these aren’t covered by Medicare.

Retirement Budget

There’s no way of knowing exactly how much you’ll be spending during retirement, but it’s possible to have a general idea. Developing a list of monthly and annual expenses that you know will be recurring during retirement. Add in things like vacations and expensive items you wish to purchase. Know around how much you should expect to spend during the first few months, so that you know if you’re spending too much after you retire.

Post Retirement Plans

Far too often people get to retirement and don’t know what to do with themselves. Don’t let this happen to you. Investigate any and all things you might be interested in beforehand. Common things to think about are community involvement, future work, personal goals, and health.

Post Retirement Social Outlets

Unfortunately, work is often times a main social outlet. Before you retire, you should analyze your social situation and make arrangements. If you only socialize with people from work, realize that that social outlet will soon be gone and need to be replaced. It’s always a good idea to connect with friends who have already retired, as they can be a new social outlet and support group.

If the above mentioned things are squared away before your retirement, you will surely kick your retirement off to good start. You’ll put yourself in a situation where all your basics needs are met and you can be free from worry and burden. The only thing you’ll have to be concerned about is enjoying your retirement in the best ways possible.