Set a retirement budget: Estimate your post-retirement expenses and create a realistic budget. This will help you determine how much you’ll need to cover daily living expenses, healthcare and leisure activities once you stop working.
Plan when to claim Social Security: Waiting until your full retirement age or beyond up to age 70 can increase your monthly payments, offering more financial security throughout your retirement. However, ill health, shorter life expectancy, physically demanding work and other circumstances may suggest claiming earlier.
Plan for healthcare needs: Healthcare costs can be significant in retirement. Consider contributing to a health savings account (HSA) if you’re eligible, or looking into long-term care insurance to cover future medical expenses that Medicare may not cover.
Consider annuities: Annuities can provide a guaranteed income stream in retirement. Although they are costly and complex, they can help supplement Social Security benefits and ensure a stable source of income.
Consult with a financial advisor: A financial advisor can help you assess your current savings, develop a catch-up plan, and adjust your retirement strategy based on your goals. Their expertise can be invaluable in ensuring you’re on the right track.