The practicality of living through a pandemic has forced a lot of people to have some very real conversations about their readiness for various eventualities. One of these conversations center around retirement and what kind of steps need to be taken to prepare for this chapter in life. If you’re a baby boomer who is nearing the age of retirement and you’re having that conversation, let’s run through some tips that will ensure you’re prepared for what’s ahead.
Most people have a budgeted spending plan but yours needs to allow for a bigger wiggle room when it comes to saving amounts. Some people suggest putting 5% of a salary away for savings but you are going to need to up that percentage a little bit which may mean having to juggle other finances in a smarter way. Do you have a life insurance policy that you no longer need? Perhaps you could review a guide on how to cash out your life insurance policy for the appropriate cash value? Doing so will give you access to a cash payout and the purchaser will take over all premiums going forward.
Do you want to be mortgage-free and own your own home before you retire? It’s time to prioritize that goal and work towards it. Yes, that might mean cutting back on impulse buys and sticking to low budget family vacations for a couple of years but you’re never going to achieve your goal if you don’t change your spending habits. Whatever your financial goal, whether it’s to be mortgage-free, buy a new car or build a huge savings nest, it’s time to sit down and come up with a plan on how you’re going to achieve that target and in what timeframe.
This is quite important as a lot of people are intimidated by health options as retirement approaches and beyond. If you are someone who already lives with a disability then this becomes even more crucial so don’t waste any more time thinking about what you’re going to do. Speak to your insurance provider and find out what kind of cover they will offer you when you retire. Talk to your family and share your concerns so they can help in whatever way they can. Also, be sure to have this conversation with your own doctor and get their opinion on what action you need to take.
Various countries have different benefits for elderly people. These can differ from state to state in the US so take some time to become familiar with what benefits you’re entitled to. It could be that you’re entitled to a weekly pension or you’re entitled to so many days of respite in a care home per month. You should join any senior citizen groups in your area and talk to people about what kind of benefits they’re availing of. Doing so will ensure you never miss out as this area of legislation is one that’s always changing.