Are you going to retire within the next year or so? If so,
you’re probably excited and looking forward to a time when you don’t have to
work and can enjoy your life.
However, even though you’re close to the finish line, the
race isn’t over yet! Now isn’t the time to cut loose. In fact, it’s more
important now, in the final working stages before retirement, to do the right
things.
In order to help you enter into the blissful retirement period you’ve always dreamed of, here’s a list of things you absolutely
shouldn’t do before retirement.
Don’t Stop Planning
Hopefully, you’ve carefully budgeted your money and saved
throughout the last few years.
Whether you have or you haven’t, now is definitely not the
time to let such matters fall to the side.
You absolutely need to be sticking to a budget- preferably a
budget that allots money for savings each month. More importantly, you need to
have developed a realistic idea of how much money you will need each month
during your retirement.
If you can start sticking to a retirement budget now, before
you’ve actually retired, you’ll have time to see how your budget works for you.
If it’s not quite right, you still have time to make adjustments.
Don’t Ignore Insurance
Just as you don’t want to ignore budgeting matters during
your pre-retirement phase, you also don’t want to ignore your insurance
policies.
In fact, the period right before retirement is actually the
perfect time to review your insurance policies.
Make sure none of your policies are going to become defunct
before you can start getting Medicare (at the age of 65).
Also, your budget is likely to change during retirement, so
you may need to adjust your policies and premiums based on your new budget.
Don’t Put off Home Refinancing
When high school seniors start getting lazy and doing a lot
of procrastination, it’s often referred to as “senioritis.” Don’t develop your
own form of true senioritis, especially when it comes to refinancing
your home.
If this is something you’re considering or have already
decided on, it’s best to go ahead and do it while you’re still generating an
income.
A lot of creditors aren’t as willing to offer loans to those
who have already retired, so if refinancing is something you want, it’s best to
take care of it now.
Don’t File for Social Security....Yet
The rule is that you can file for social security the minute
you hit 62. However, that’s not always the smartest decision.
You should understand that your monthly benefits grow the
longer you put off filing for social security. They continue to do so up until
you reach the age of 70. So, the longer you can hold off- obviously, the best
case scenario is that you wait until you actually are 70- the better your
pay-off.
If you’ve been banking on social security but are considering
waiting to file, now is the perfect time to take a look at your budget and see
where you can make adjustments that will allow you to delay receiving your
social security funds.
Don’t Set Yourself up for Boredom
Finally, while it’s obviously very important to do some
smart financial planning during this stage of your life, it’s also very
important to plan for...well...your life in general.
A lot of people are surprised to find that they are bored,
lonely, and even depressed once they retire. Don’t let that be you.
Now is the time to start making plans for fun during
retirement! Consider groups or organizations you might join, places you might
travel to, and activities or causes you might want to get involved in.
After all, the whole purpose of planning for retirement is
so that you can enjoy life to the fullest once you’re done working!
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