Getting ready for retirement can be hard work. The Wall Street Journal shares essential tips for potential retirees
If you’ve been thinking about retiring in 2015, a recent article in the Wall Street Journal suggests that you think again. Why? Because even though you may have been preparing for it for years, you may not really be ready for retirement.
According to author Tom Lauricella, there are a few things you need to do before you hang up your boots.
Get Medicare
It is best to sign up for Medicare soon. Because once you cross 65, you risk higher premiums. It is also essential to understand the details about your coverage and possible expenses. For instance, “many retirees are surprised to learn Medicare doesn’t cover vision and dental, which is often costly for older adults.”
Postpone Social Security
Social Security is free money, so get it as soon as you can, right? Wrong.
Many sign up for Social Security the moment they give up their full time job. However, according to Lauricella, if one delays receiving Social Security until their full retirement age – say the age of 70 – one can earn far larger benefit payments.
As Cheryl Costa, financial planner at Forteris Wealth Management, says, “people shouldn’t fall into the trap.” The best thing would be to visit the local Social Security office and inquire the exact benefits you would earn if you wait until after you’re 70 to file for Social Security.
Set a Realistic Budget
This is where most people go wrong. Before retiring, you need to set aside a detailed income and spending budget. It should also include funds for unforeseen emergencies and some one-off big expenditures.
According to Cheryl Costa, you need to practice living within your spending budget before your retirement. This way, you will have a clearer idea whether your budget is realistic.
Adapt Your Lifestyle
The biggest hurdle to a great retirement is not money, it is time. Or rather – too much of it on your hands.
Many Americans fantasize for years about what they are going to do after retirement – play golf, fish, travel, etc. But can you play golf for the next 20 to 30 years?
What you need to do is figure out a way in which to keep yourself meaningfully engaged for the rest of your life.
Work Towards Your Retirement
The thing about retirement is, you will have the rest of your life to enjoy it. So, there is no need to rush in to it. As Cheryl Sherrard, director of financial planning at Clearview Wealth Management in Charlotte, says, “You don’t want to see people just stepping off a cliff into the big unknown.”
photo credit: Adrien.Pâris. via photopin cc
Tags: cheryl costa, cheryl sherrard, clearview wealth management, forteris wealth management, social security, tom lauricella, wall street journal
