5 Actions For Your Retirement Readiness Checklist

The Bureau of Labor Statistics records show that the average American age 55 or older spends $49,279 every year. Know how your pre- and post-retirement budgets compare and plan now so you stay on track throughout your retirement years.

Take Inventory of Your Assets

• Figure out where you stand financially.
• Evaluate your budget – every debt, liability, bank balance, property, income…

Build an Emergency Fund

• Have a plan to protect yourself in case the unexpected happens.
• Save a minimum of three months’ worth of living expenses.
• Keep your emergency funds separate from spending money – so you aren’t tempted to spend it.

Eliminate All Debt

• Prepare your wallet by paying down all debt – you won’t have a paycheck soon and your expenses could go up.
• Cut the interest you are paying on loans like cars, credit cards, and personal loans by paying more than monthly minimums.

Determine Your Retirement Needs

• Consider where and how you want to live during retirement.
• Create a timeline to outline when different income streams will begin.
• Determine the expected amounts of Social Security, employee-sponsored retirement accounts, IRAs, and wages/pensions.

Square Away Your Health Insurance

• Your medical expenses will likely be a large portion so budget at least 15% of your income for this category.
• Determine where you’ll be getting your health insurance coverage.
• Know the terms, conditions, and associated costs of premiums, deductibles, and out-of-pocket expenses.