Five Things to Do Before You Retire

Retirement is an exciting prospect for many people, but seldom does anyone truly prepare for their golden years. The following five tips will help you ensure that you are ready to say goodbye to the workplace and hello to the best years of your life.

Decide How Much Health Insurance to Buy       

In the event that you’ve had health insurance through your employer, there’s a chance that you may be able to continue it after your retirement. However, if this isn’t an option or if it will be too expensive for you to continue under the same plan, then you might need to seek out other options. You’ll be eligible for Medicare at age 65 but, for many people, this coverage is simply not enough. You should weigh your options, consider your current state of health, and purchase a plan that won’t break your budget.

Create a Last Will and Testament

This can be a difficult prospect for some people, but it’s something that needs to be done nonetheless. Here, you’ll want to consider how much life insurance you have (and you’ll also want to purchase some if you haven’t yet) and how it will be divided among your family and loved ones after your death. You will also want to declare how your physical property – including any real estate you own – should be handled. Finally, make sure that you include a ‘living will’ which is a declaration regarding whether you want life support or even CPR in the event of a medical issue.

Finish Paying On Your Mortgage

More than likely, your mortgage (if you have one) is your biggest expense. You’ll want to make sure that you’ve paid this off, and if you can’t pay it off altogether, you can also look into refinancing so that you can receive a lower monthly payment. Another option is the reverse mortgage, but this is something that many people don’t fully understand. After your death, if you are the only person living in that home and the only name on the title, then your home will be possessed by the bank that provided the loan.

Check Pensions and 401(k) Plans

A lot of people rely on their pensions and their 401(k) savings after retirement, but few people actually understand how much they’ve saved or what will be provided to them. If you’re considering early retirement, keep in mind that your pension is likely to change drastically. Similarly, in the event that you attempt to withdraw funds from your 401(k) plan early, you’ll be penalized for that, as well.

Host a ‘Trial’

Once you’ve gotten all of your affairs in order, one of the best ways to make sure that you’re prepared for your retirement is to live as if it’s already occurred for a period of two to three months. Stick to your budget and your plan, and if something seems amiss, make an adjustment. This way, you’ll know exactly what you can expect and exactly what you’ll need to do to get there.

Preparing for retirement is a task that takes decades to perfect, but even if you’re behind in the process there are still some things you can do. Considering your insurance policies, pensions and more will not only help you live comfortably, but it will ensure that your loved ones will be cared for after your passing.