Top 4 Tips to Consider Before You Retire

Top 4 Tips to Consider Before You Retire

Getting yourself prepared for retirement means getting all of your ducks in a row and finding ways to reduce stress and improve your finances so you can live comfortably during your retirement years. That means doing things like considering Medicare, planning for inflation, paying down your debts, and potentially retiring at a later age. Below you’ll find our suggestions for the top pro tips to consider before you retire.

1. Considering Healthcare

Once you reach retirement age, you’ll be eligible for Medicare, which means you can save even more money on healthcare costs. Medicare has four parts — Parts A, B, C, and D.

· Part A helps you pay for hospital stays, short-term skilled nursing facilities, hospice care, and home health services.

· Part B helps you pay for doctor’s appointments, diagnostic tests, outpatient care (in or outside of a hospital), preventive care, and certain medical supplies and equipment.

· Part C helps cover everything Original Medicare covers and allows you to get all of your Medicare benefits all in one plan. It’s offered through private insurance companies and often called a Medicare Advantage plan.

· Part D helps you pay for FDA-approved prescription medications. Many seniors opt for a Medicare Advantage plan because they can get everything they need from one place. Learn all you can about Medicare Advantage plans and start comparing the different types so you can make an educated decision on enrolling in custom coverage that suits your lifestyle.

2. Retiring at a Later Age

More and more seniors are postponing retirement and holding off until they’re at least 70. Retiring at a later age could also mean putting off Social Security benefits now so that you can see higher returns later. The return for waiting is about 8 percent per year so if you want to increase your retirement income, consider waiting until about age 70 if you reasonably can. People who don’t have much savings (or any) or who need their job for more than just a paycheck should consider retiring at a later age, especially if they’re in good health because the benefits could be worth it.

3. Planning for Inflation

One of the most overlooked aspects of retirement planning is inflation. Your money will be worth a lot more when you first start saving for retirement than it will be when you finally go to use that money. That’s why you should aim to choose investments that rise with inflation, such as treasury inflation-protected securities and inflation-indexed immediate annuities. These two are the safest types of investments you can make to ensure that your money doesn’t lose its value as you save and grow it. Two types of medium-risk investments that can help you plan for inflation are inflation-protected bond funds and floating-rate funds.

4. Paying Down Your Debts

Before you head into retirement, try to pay off as much debt as you can because once you’re living on a fixed income, it might be harder to pay off debt. Paying off your debts also helps you avoid interest and teaches you to live within your means. Paying off your debts can also allow you to make decisions much more clearly because you won’t have anything looming over you clouding your judgment. So find a way to pay off your debts before you retire so that you can have fewer things to worry about during the years you’re supposed to be relaxing and enjoying life.

Planning Properly for Retirement

Preparing for retirement can mean a lot of things depending on your individual situation, but one thing is for sure. You’re going to need adequate health insurance during retirement, which means determining if you’re eligible for Medicare. You should also make sure your finances are in good shape before you retire so if you have any debt. And if you want your money to last, plan for inflation and consider retiring at a later age. Doing these things can ensure you successfully retire.

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