Recently I have talked with several people who are anticipating retirement in the near future. It has caused me to reflect on my own experience three years ago. I have been thinking about some of the things you should do in the year before retirement.
There are some basics that you need to check out. You need to get an accurate fix on your Social Security income. That can now be calculated on their website. Don’t forget that if you spouse is at retirement age, you also can choose either to include your spouse’s social security or one-half of yours, which ever is more. Then you need to add to that your own retirement package from your denominational pension plan. The Presbyterians have a very good procedure for helping you think through that. I’m sure that other denominations also have helpful ways in thinking through this.
Next, you need someone to help you think through your medical plans. You will be bombarded by supplemental plans, drug plans, etc. Try to find someone who you trust and is knowledgeable to help you think this through. Remember the maxim, if it looks too good to be true, it probably is. I personally think the Presbyterian medical plan is very good and has served me well, but each person has to make that decision.
If you don’t have a financial planner, you need to find someone to help you look at your other resources and draw up a plan. This is worth a little extra expense for their services. You may also be able to find various helpful tools on the net to help you think through these issues. The important thing is to use some resources and time now to plan ahead so that you don’t get caught in a bind. Our economic downturn has created some new challenges in this area and therefore it is all the more important that you do some planning ahead.
Included in that plan should be options for some enjoyment. What is it that you hope to do in retirement that perhaps you have not had sufficient time to engage in before but hopefully you can now include that in your planning. This may be a hobby, travel, research, entertainment, or some other activity. What money is going to be necessary to set aside for that.
Of course you need to think about your living arrangements. Do you want to (need to) move? What type of expenses is that going to include? Where do you want to live? Who needs to be involved in that decision? Is it just a decision between you and your spouse or do your children or parents need to be in on that conversation?
These are just some of the practical decisions. Tomorrow I want to reflect on some other, less tangible, but very important decisions.
