4 Key Questions You Should Answer Before You Retire

Saving for retirement is much different than planning for income during retirement. When you decide to stop working, replacing the certainty of a paycheck and other benefits can be a logistical and emotional challenge. The following questions should be answered prior to retirement.

When should I claim social security?
Social Security allows you to claim your benefit as early as age 62, or as late as age 70. For someone who expects the maximum payout, the monthly payment can be as little as $1,750 or as much as $3,400. When you should claim depends highly on your other income available and health factors. It’s always a good idea to check your statement for projections, or view it online at ssa.gov.
How will I pay for healthcare?
A 65 year old can expect to pay anywhere from $250,000-$400,000 for healthcare premiums, deductibles and costs over the remainder of their lifetimes. Medicare can help offset some of the cost once you turn 65, but you should consult with a Medicare expert to ensure you have the best plan. Outside assets may be needed to help shoulder the cost.
Do I need to change my investment allocation?
Stock market drops can be waited out during your saving years. However, once you retire a bear market can impact your portfolio and income. It’s important to have a plan in place that provides income for years when the market is down.
Should I pay off the mortgage?
Most people have a goal of owning their home outright by retirement, but it doesn’t always happen. It always feels good to eliminate a payment, but this decision is highly individualized. Home interest is one of the few tax deductions most Americans have, and eliminating the loan can eliminate the deduction.

If you’re retired now or are considering retirement soon, give us a call. We would be happy to help you address these questions and all the others you might have.