Mapping out your retirement - from estimating your needs to planning your income - means giving yourself greater possibilities and freedom to enjoy your future.
Preparing for retirement? Start with these three key areas
Ahhhh, retirement: It's what you've worked, saved, and planned for all these years. Now that it's approaching, have you thought through all the steps you need to take to transition into retirement? Here are three major planning areas:
- Turning savings into income. To start your next chapter in life with comfort and confidence, you'll need to create a plan to turn the money you've saved into a steady stream of income.
- Timing your Social Security benefits. You're eligible at 62, but when should you start collecting Social Security? While there is no one-size-fits all answer, waiting could potentially increase your retirement income.
- Planning for health care costs. This is a biggie - and often underestimated. Our 2020 health care costs study¹ estimates that a couple retiring in 2020 at age 65 may need current savings of at least $295,000 to supplement Medicare and cover their out-of-pocket health care costs in retirement. Consider how much health care will cost you, how much Medicare will cover, and how you will bridge the gap.