When considering retirement readiness it’s important to take into account more than simply retirement savings. That is precisely why we have made you this handy checklist to get your things in order before you retire.

Determine Your Retirement Readiness 

Take Inventory of Your Assets

First, you must figure out where you are financially. This means evaluating your budget, debt, savings, stream of income, and insurance. Don’t forget to count properties, vehicles, boats, and other valuable possessions. It might be wise to create a spreadsheet that you can adjust regularly to keep track. This allows you to assess your finances accurately.

Build an Emergency Fund

Before you run into financial trouble you’ll want to make sure you’re secure, should the unexpected occur. Hopefully, you already have a financial security blanket and if not, now is the time to create one. This way you will be covered should an unexpected event happen. It is recommended that you have about three months of living expenses squirreled away, however, some experts recommend saving up to a year’s worth of expenses. Remember to include expenses that are currently covered by employers, like healthcare coverage. Keep this fund somewhere safe yet separate from your other forms of savings.

Eliminate Debt

Since your income will probably decrease, fixed payments will begin taking up a larger share of your expenses. If you are looking to retire soon, it might be time to take a close look at your debt (from your inventory in step one). You can start by either paying down debts with the smallest amounts or those with the highest-interest rates. If you can afford it, those debts with high-interest rates can help you save if you pay them off early. Regardless of which repayments strategy you choose, the important thing is to stick to your plan.

Determine Your Retirement Needs

To determine your retirement needs, you’ll need to determine how you want to retire. This should involve considering where you want to live and how long you might consider working. Also, try to be realistic about your retirement length. This can be difficult to determine, but you can always refine your estimate. It might be helpful to create a timeline showing when certain streams of income will begin. This helps you manage your cash flow and ascertain how much you will need to save.

Health Insurance

Healthcare will inevitably be one of your biggest expenses in retirement. According to this article, a 65-year-old retired couple will need about $295k for medical expenses. In addition to factoring this expense, you’ll want to consider where you will receive health insurance coverage. If you retire at 65, you can rely on Medicare for some of your retirement needs, but it is important to know what Medicare covers.

With all the senior living options today, researching each of them can be exhausting. To help, we have created your FREE Your Options for Future Care to get you started.

Confident Living is a continuing care at home membership program, focused on helping you remain active and independent as you age in your own home. We serve the greater Cincinnati area. For more information, contact us online or call (513) 719-3522.