Preparing for Retirement

Preparing for retirement can feel overwhelming, with many factors to consider. This guide offers a clear approach to help you navigate the key steps and make a smooth transition into retirement.

1. Determine your retirement needs
   
   Estimate how much money you will need in retirement. This includes daily living expenses, healthcare costs, travel, and any other activities you plan to pursue. A common rule of thumb is to aim for 70-80% of your pre-retirement income.
   
   
2. Pay off debt
   
   Reducing or eliminating debt before retirement can significantly lower your monthly expenses. Focus on paying off high-interest debt first, such as credit cards, and then tackle other debts like mortgages and car loans.
   
   
3. Maximize your savings
   
   Increase your retirement contributions whenever possible. If you receive a raise or bonus, consider allocating a portion of it to your retirement savings. Utilize the auto-escalation feature in your retirement plan to automatically increase your contributions over time.
   
   
4. Invest wisely
   
   Building your investment portfolio is key to a successful retirement plan, balancing out your risk tolerance with your retirement timeline could maximize your retirement funds for you. Regularly reviewing and adjusting your investments and your investment policy statement can help you stay on track with your goals.
   
   
5. Plan for healthcare cost
   
   Healthcare can be one of the largest expenses in retirement. Consider long-term care insurance and understand what Medicare covers and what it doesn’t.
   
   
6. Create a retirement budget
   
   Develop a budget that outlines your expected income and expenses in retirement. This will help you manage your finances and ensure you live within your means. Include all sources of income such as Social Security, pensions, and any part-time work.
   
   
7. Understand social security benefits
   
   Create a Social Security account to track your benefits and understand how different retirement ages affect your monthly payments. Delaying benefits can increase your monthly payout, but it’s important to balance this with your financial needs.
   
   
8. Consider part-time work
   
   Many retirees find that working part-time can provide additional income and keep them engaged and allows them to explore opportunities that align with their interest and skills.
   
   
9. Estate planning
   
   Ensure you have a will and other essential documents like a power of attorney and healthcare directive.
   
   
10. Regularly review your plan
    
    Retirement planning is not a one-time task. Regularly review your plan and adjust as needed.
    

For more information on preparing for retirement, contact a Nepsis advisor for information and assistance.

Advisory services offered through Nepsis, Inc.: An SEC Registered Investment Advisor.

Sources:
Investopedia’s Retirement Planning Steps⁵
NerdWallet’s Retirement Planning Guide¹
Kiplinger’s Step-by-Step Guide to Retirement Planning⁶
U.S. News’ 20 Steps to Take When Preparing for Retirement³
Ramsey Solutions’ Retirement Planning²