Some people love working… And then there’s everyone else. If you’re feeling antsy to retire soon, stop and ask yourself these three questions to assess your knowledge and readiness.
Retirement planning is composed of many important factors. But if you can answer these questions confidently, you’re probably getting close to retirement!
What is your plan for healthcare? You know that you’ll be eligible for Medicare at age 65. But most people don’t realize that Medicare won’t actually pay for everything they will need with regard to healthcare.
You will pay Part A, Part B, or Medicare Advantage premiums, copayments, and deductibles. The out-of-pocket costs for prescription drugs can be a real drain on your budget, so you might want to consider a Part D plan. And because Medicare doesn’t cover vision and dental care (except for some Advantage plans) you should make a plan to pay for those services, too.
Finally, what about nursing care? You need a plan in the event that you require in-home or institutionalized services.
Have you reached your full retirement age? According to the Social Security Administration, full retirement age is either 66 or 67, depending upon when you were born. That’s when you’ll receive your full scheduled benefits checks, as determined by a formula that uses your 35 highest-earning years to calculate payments.
You need to estimate those payments, and then consider other income that you’ve established, to determine whether you can set a reasonable budget for retirement.
Have you met your savings goal? Will your retirement account provide enough income via your withdrawals? And how long do you anticipate needing to take withdrawals? Most of us want to plan for 20 or more years of income, to prevent a situation in which we run out of money.
Luckily, you don’t have to answer these questions alone. Call us to schedule an appointment, and we’ll help you understand your projected Social Security benefits along with all of your retirement income options.