Estate Planning and Tax Lawyer Blog

Planning for your retirement is not only about the amount of savings you put aside. While putting aside enough money for retirement is important, it is also important to determine how you would like to spend your time later in life. By doing this, you can determine how much money you will need to save and how fulfilling your retirement will be for you. Following is a five-year timeline prior to retirement to determine what you need to do. Five years, if not before, you will need to start thinking about what you and your spouse wish to spend your time in retirement doing. Look at your current hobbies and activities. Also look at your finances and determine if you will have saved enough in the next five years to realistically retire. If you have not done so, create a will, appoint a power-of-attorney, create a health-care directive and make an estate plan. Four years from retirement, you should start researching ideas of what you would like to do for retirement and whether it includes moving into another community. It is also a good idea to start thinking about when to claim social security; the longer you wait to receive it, the bigger the monthly payout. Three years before retirement, you will want to start visiting other communities if seriously planning on moving, determine the benefits you are eligible for, and become knowledgeable about Medicare. Two years out, you will need to determine if you will want or need to work for pay in retirement and research interim health insurance if you plan to retire before becoming eligible for Medicare. A year before retirement, you will want to adapt your retirement savings into a stream of income that will last your lifetime. You can consult financial advisors to help create a budget that would be ideal for your circumstances and savings.

To learn more about this article, visit Ready to Retire? Here's a Five-Year Pre-Retirement Plan.