Retirement is the time of life to relax and enjoy your achievements as well as the fruits of your labor. Several resources can help you make the most of your golden years. Here are some that can assist in preparing financially for the rest of your life.
Social Security Consultation
Assuming that you will be drawing social security benefits when you retire, schedule a phone meeting or in-person consultation with the Social Security Administration. Although everyone receives electronic or mailed annual statements of their contributions and expected benefits, it is a good idea to talk to some at the agency who can answer your questions. For example, you may want to consider the best time to start taking social security payments and how working after retirement might impact your monthly benefits.
Pension Plan Review
If you expect to receive pension payments, contact the organization and set up a time to discuss the payout when you retire. Some options might include a single payout or monthly payments. You will need to coordinate pension benefits with those that you may be eligible for with Social Security as well as any other retirement income you expect to receive.
Tax Planning
Your tax bracket and the amount you pay may change dramatically in retirement. The adjustment could be complex and hard to understand. Things like hereditary gifts and ongoing employment could affect how much tax you owe. Enroll in tax planning classes to learn more about your estimated tax status when you retire. The classes might provide books, videos, and other resources that you can keep and refer to after you retire. You will also probably learn about additional tax resources to consult as retirement approaches.
Financial Planning Update
Meet with a financial planner to discuss your various loans, investments, and savings. For example, is it advisable to pay off your home mortgage or put extra funds into a retirement account? Should you try to invest more each month or change the stocks in your portfolio? Would it be advisable to transfer any balances in a savings account to an investment fund generating higher interest or keep funds in savings for an accessible emergency fund? If you continue working in retirement, what is the best use of those funds? These and other questions can be answered by a financial planner.
It's never too soon to start planning for retirement. Make the most of resources like these to further gild your golden years.
Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.