Retiring? Top Six Things to Consider Before You Leave Your Job

The following is courtesy of ARA Content.

There’s no better time than the start of the New Year to take a fresh look at our financial future -- including how we plan for retirement.

For the 76 million baby boomers approaching retirement age, preparing for the golden years may mean making several important decisions while still in the workforce to help ensure that they will have enough money to live in retirement. As retirement looms closer, the overwhelming possibilities can leave many people uncertain about where to start.

To help Americans get started -- and perhaps focus on their retirement plans as part of their New Year’s resolution -- Prudential Financial has identified six important financial considerations to think about before retiring.

“Just as the boomer generation has redefined history and culture, they will also change the nature of living in retirement,” says Jill Perlin, vice president, Prudential’s Retirement and Wealth Planning group. “Boomers and younger workers who understand what to do -- and take action -- before they leave the workforce may have many more choices available to them during their retirement years.”

The Top Six

1. Define your retirement -- Your vision will drive your plan. Some may decide to work part-time, launch a completely new career, or perhaps go back to school, volunteer or develop new hobbies. Consider if you need to downsize, relocate or remain in your current residence.

2. Know where you stand financially -- Take inventory of your assets and possible income sources, and understand how your retirement plan will help provide you with income during your retirement years. Save as much as possible while still working.

3. Estimate your expenses in retirement, especially for healthcare -- Healthcare can be a significant expense category during your retirement years, so understanding what your healthcare plan covers in retirement is critical.

4. Manage asset allocation -- Regularly monitor and review your investments to ensure that they support your goals and to determine if you should change how assets are allocated among different investment types; consider professionally managed investments products.

5. Plan for your beneficiaries -- Create a will, choose a guardian if needed, and select who will manage your estate.

6. Explore options to create a retirement income -- Research product strategies that can help generate a guaranteed retirement-income stream, including the new generation of variable annuities that can provide guaranteed streams of income for life while still affording degrees of flexibility and control. It may be advantageous to purchase these products while you are still working.

According to Perlin, it’s never too early or too late to start taking these tips into consideration. “People who are nearing retirement need to think about how to help grow, protect, and convert their assets into retirement income -- and that can take some time. Being engaged in this process while still working allows boomers more flexibility to course-correct, if necessary.”

For more information about important retirement considerations and choices, review and download a copy of “The Fourth Pillar: Retirement Choices” brochure at Prudential’s Web site.

Comments

[Ron@TheWisdomJournal]

What do you think about creating a living trust to avoid probate? I'm seeing more and more of this strategy on other blogs and sites.

(Great list btw)

[Susan]

Or more importantly than money is what you actually plan to do when you retire. I know lots of people that are so happy to get to that retirement date, but once they get there, they get depressed sitting at home.

[FMF]

"What do you think about creating a living trust to avoid probate?"

It's something I'm working on now.

[ViSalus]

Great post, very thoughtful, usual thing.