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.
We’d Love to Help You With Your Retirement Plan
This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
Adapted from: https://smartasset.com/retirement/retirement-prep-checklist