Retiring is one of the most important actions you will take in your life, especially now when it is not uncommon to live 20 or 30 years beyond retirement. And retiring is not simple — there are many things to think about and to do to get ready. Here are a few:
- Contribute to your retirement account as long as you can and carefully consider how and when you will begin to withdraw funds from your retirement account.
- Take a deep dive into your Social Security projections to establish a plan.
- You may want to delay your start; know your options and the benefits of delaying and weigh them against the benefits of beginning as soon as you can.
- Your health is so important, and medical bills can certainly derail your savings if you’re not prepared. Take the preventative steps now to evaluate your health and predict what you might expect in retirement.
- Avoid late enrollment in Medicare to avoid penalties. If you don’t sign up for Part B when you’re first eligible and don’t qualify for a Special Enrollment Period, a penalty kicks in and raises your monthly premium by 10% for each year of delay — for life.
- Make sure to stop contributing to your Health Savings Account (HSA) at least 6 months before signing up for Medicare or retiring to avoid tax penalties.
Here are some additional tips to consider when you reach retirement:
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