When a person approaches retirement, he or she should prepare for the process as early as possible. This allows an individual to avoid common pitfalls and mistakes. With this in mind, here are 10 things to consider when you approach retirement.
Coverage: As a working adult, a person will notice that they rarely, if ever, qualify for a break. However, once retired, an individual must research auto, health insurance and other costs. With auto insurance coverage for seniors for example, one can pay lower rates in some cases. On the other hand, when a consumer does not do any research, he or she will have a hard time getting the coverage they need at an affordable price.
House: When working on a house, a homeowner will spend a lot of money. Whether a person wants to put in new floors or redo a yard, he or she will spend thousands of dollars. Now, during retirement, this is not an easy cost to justify. For this reason, when approaching retirement, a person should opt to make any serious home improvements. This will allow a senior to live out his or her years without worrying about massive one-time expenses.
Saving: Of course, a person, as soon as they start working, should start putting away money for retirement. Otherwise, he or she will struggle in old age. To get started, one should start saving some money in a 401k and IRA. With this, one can enjoy a tax break and begin saving for the future.
Needs: When looking at oneâ€™s needs, it will be easy to plan for retirement. One must keep in mind that expenses may not go much lower. While a person will not need to update his or her wardrobe, they will still spend money on travel and other expenses. In fact, some spend more in retirement.
Cars: When heading into retirement, a person should pay off his or her car. Not only that, when retired, it is wise to start with a new or low-mileage car. When doing so, a consumer will not have a significant expense occurring in the near future.
Downsize: When looking to retire in comfort, many opt to downsize. This means that some people will buy a smaller house or condo and sell their old one. Others will not sell their house, but may opt to get rid of items and have a big garage sale.
Will: Most people have some assets they want to pass down to friends or family members. To do it without issue, one should hire an attorney and draft a will. When doing so, one can prevent problems after their death.
Social security: Now, most people will receive social security. However, when planning, a smart retiree should know how much he or she will get. When knowing this, one can plan for the future without worry.
Debts: As one approaches retirement, they should try avoid carrying debt. When paying off credit cards or other bills, one can enter retirement without a weight on their shoulder.
Comprehensive physical: When working, one should get a full physical and start to work out or eat healthier. With this, one will save money and avoid serious health complications in the future. With these ten tips, a person approaching retirement will not struggle as much as his or her peers who do not prepare wisely.