Retirement Readiness Checklist: 8 Steps You Need to Take

Retirement readiness isn’t just about having enough money – it’s about strategic planning and making informed decisions. By following this checklist, your future self will thank you for the foresight and preparation you invest today.

Assess Your Financial Health: Start by taking inventory of your assets, including savings, retirement accounts, properties and any income streams. To understand how much you might need, compare your financial status against average annual expenditures for retirees and what your spending has historically been.

Build a Safety Net: An emergency fund is your financial safety net, ideally covering at least six months of living expenses. This fund should be easily accessible and separate from your other savings.

Aim to Retire Debt-Free: Prioritize paying off high-interest debts first, such as credit card balances. Consider mortgages as lower priority due to typically lower interest rates. Consistency is key for debt repayment , and celebrating small victories can keep you motivated.

Envision Your Retirement Lifestyle: Determine your desired retirement lifestyle, including living arrangements and potential income sources. Factor in taxes and create a timeline for when various income streams will begin.

Secure Your Health Coverage: Healthcare costs can be significant in retirement. Understand your options, whether it’s Medicare or private insurance, and ensure you’re aware of premiums, deductibles and out-of-pocket costs. Adjust your retirement plan accordingly to cover these expenses.

Estate Planning: Prepare for the inevitable by setting up an estate plan. This includes a will, power of attorney, healthcare proxy and beneficiary designations. Keep all documents updated and accessible.

Consider Your Investing Needs: Explore investment options that can supplement your retirement income, keeping in mind your risk tolerance . Consider various investment types, including mutual funds, bonds, real estate, closed-end funds, dividend income funds and annuities.

Build an Income Plan: Understand the rules for withdrawing from retirement accounts and claiming Social Security. Consider rolling over employer-sponsored plans into an IRA for consolidation and tax efficiency. Decide on the timing for Social Security to maximize your benefits.

Ready for retirement? Start by assessing your financial health. Click here to learn how, to discuss what your retirement may look like.