All things apart, when one retires there are a few decisions that need to be made and cannot be avoided. Let’s look at 5 decisions that you will need to make when you retire.
Will you continue working after your official retirement?
There are a lot of people who continue there own small business or become self employed after they have retired from their jobs. Ofcourse not everyone has entrepreneurial instincts and can start a business when they retire. But it is a good option that should be considered. It will become a source of income for you and your dependents.
When should you claim your Social Security?
The government allows you to claim Social Security from the age of 62. But payouts increase every year you delay the claim till the age of 70. If you can, then wait it out and claim your Social Security as late as possible because the payout increase in the last years is quite enormous for every year you delay.
How to maintain health insurance?
You need to find an affordable plan for health insurance when you retire. If you do not have medical benefits with your retirement plan then make sure that you have individual medical coverage. Health insurance is extremely important for coverage of medical expenses, especially prescription drugs needed every year.
Where will you live?
When you retire you will most probably be living alone or with your partner. There are a lot of people who live on rent and do not own their own place. Now that you don�t have a job to go to every day or children to bring up, you can choose to live wherever you want. You might want to move in to a place that has a lower rent and is not too expensive to manage. You are also free to move to a smaller town with better weather and away from the metropolitan noise or maybe somewhere closer to your family.
What will you do?
Retirement means no more spend 8 hours every day at a stressful job, it means you are free to spend your time as you like. Make some retirement plans that you can follow when you retire. Catch up with family and friends, reconnect with your hobbies, or go on a long vacation.
Allan has been blogging about retirement planning and smsf for the last 3 years. When he is not working, he loves spending time with his children.