When in your 60s, retirement can be years, months, or even days away. The closer you get, the more unprepared you may feel for what’s to come. You aren’t alone! Many people in their 60s feel the same way about their impending retirement. The good news is that by making smart money decisions, you can aim to keep yourself in good financial standing, setting yourself up for success in your post-work years. Here are a few tips for planning for retirement in your 60s.
Determine How Much You Need to Retire
Are you on track for retirement? To know the answer to this question, you must first know how much you need to have saved. As the average life expectancy increases, retirees are living longer. So, whereas previous generations were preparing for around a decade of retirement expenses, you may be looking at more like two or three decades, by comparison. Consider what you want your post-work life to look like, and plan accordingly.
Not sure how much you need to save? Take a look at our blog How Much Should You Save Before Retirement to get a better idea.
Review Your Accounts
Before you can think too much about retiring, it’s important to know where you stand financially. Take the time to review all your accounts to determine how much you have saved and where opportunities for improvement may be. Take everything into consideration — retirement savings, cash savings accounts, debt, annuities, and any other assets or liabilities you may have. Use these numbers to guide you as you consider if you’re financially prepared enough to retire.
Ask yourself questions, such as:
- Could I retire now and live comfortably?
- How many years more do I need to work before I can retire with enough savings?
- Do I plan to stop working completely, or can I supplement with part-time work?
- With the right strategy, could I retire debt-free?
Adjust as You See Fit
Once you understand how much you need to have saved for retirement and how much you currently have, it’s time to adjust. Maybe you feel like you’re right on track. That’s wonderful. Or, maybe you feel like you want to bolster your savings just a little more before you leave the workforce. Either way, it’s time to analyze where you stand and determine what you can do to push your financial strategy a little further. For example, you may want to pay off debt, increase your 401(k) contribution for your remaining time at work, or even invest some of your money in low-risk funds. From now on, when making financial decisions, ask yourself if they are moving you toward your retirement goals.
Consider How You Will Budget for Your Life in Retirement
Now that you have put in your time, you’re probably ready to reap the rewards. You deserve it! However, make sure that you are budgeting appropriately so that you can make your money last for as long as you need it. Dave Ramsey’s budgeting app, Every Dollar, can help you budget in a way that makes you feel free to spend money on the things you love.
Consider Your Medical Insurance
When you leave your company, you might be leaving behind your medical coverage also. Consider researching your Medicare options so that you have a firm understanding of how much you could expect to spend on your health-related expenses during retirement.
Consider Post-Retirement Revenue Generators
Once you leave work, will you completely stop working, or do you have some side endeavors that you would like to pursue? To supplement your retirement funds, you may consider adding other revenue generators so that you don’t feel restricted by your budget and you can make your funds stretch even further.
Preparing to Retire? We Can Guide You.
If you’re nearing retirement, a financial advisor can guide you in creating a strategy to help you feel confident and ready for whatever those years may bring. Contact SageSpring Wealth Partners today to schedule a consultation!
Any opinions are those of the author and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk, and you may incur a profit or loss regardless of strategy selected.
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