How to Prepare Financially for Retirement

Before you retire, you want to get your finances in order. You need to make sure that you can afford to retire and also be aware of any adjustments that need to be made to your lifestyle. A couple of years before you plan to retire, start reviewing your finances.

Instructions

1. Figure out your monetary needs. Before you retire, you want to estimate how much money you need to maintain your standard of living.

2. Estimate your benefits. Figure out how much your pension benefits are worth. Contact the Social Security Administration to find out the amount of your eligible benefits.

3. Take advantage of your 401k plan. If your employer offers a 401k plan, make a monthly contribution. You will receive this money after you retire.

4. Beef up your savings. To prepare for retirement, you should put away as much money as you can into a savings plan. This money should not be touched until you retire.

5. Speak to your spouse about their retirement benefits. Work together to figure out how much money you will each receive once you both reach retirement age.

6. Fill out any applicable paperwork in advance. Many institutions, including the Social Security Administration, recommend that you fill out an application to receive benefits at least three months before you plan to retire.

Tips & Warnings

• You need to start contributing to your retirement savings and 401k plans as early in your career as possible to build up the greatest amount of retirement funds.

• Many retirees decide to work part-time to maintain a consistent income.

• If you have any questions or concerns about your retirement benefits, speak to the HR representative in your company.