Ready for Retirement? Answer These 3 Questions and Find Out!

Some people love their jobs, and then there’s the rest of us! Those of you in your fifties and early sixties are probably wondering if you can retire and begin enjoying the most relaxing and fun years of your life. Answer these three questions, and you can get a good idea of where you stand.

How will you pay for healthcare? Yes, you will qualify for Medicare at age 65, but the program actually doesn’t pay for 100 percent of retirees’ healthcare costs. You will pay premiums on Part B or Medicare Advantage coverage, plus deductibles and copayments. You will also pay for all or part of your prescription drugs, so you might wish to investigate a Medicare Part D plan (which will also come at a premium).

Then there’s vision, dental, and even hearing care. Medicare won’t always pay for these services, so you need a plan to cover them. Long-term nursing care is another big consideration. How would you pay for a nursing home, or in-home nursing care, if you ever need it?

How much will you receive from Social Security? You will reach full retirement age at 66 or 67, depending upon when you were born, and then you can claim your full scheduled benefits. Your checks are determined by a complex formula that uses your 35 highest-earning years of employment.

You could also retire as early as age 62, but your checks will be permanently reduced by as much as 30 percent. Or you could retire later, up to age 70, and earn larger checks. But whatever you decide to do, you should estimate your Social Security benefits before retirement so that you know what to expect.

Have you saved enough? Social Security wasn’t meant to fund anyone’s full retirement. So, you need to know whether withdrawals from your retirement account will amount to enough income to sustain your lifestyle. How many years of withdrawals can you cover? How much growth are you assuming? And do you have any other form of savings or income?

These are all good questions to ask as you set your target retirement date. Give us a call to schedule an appointment, and we can give you honest and thorough input on your situation, so that you can make a reliable plan now.