Approaching Retirement? Make Sure You Have These Conversations

Retirement Planning

Approaching Retirement? Make Sure You Have These Conversations

Posted by COTO Insurance & Financial Services
6 years ago | July 2, 2018

Most people can’t wait to retire, so it can be tempting to hand in your resignation as soon as you turn 65 (or 62, or some other target age that you determined years ago). But since retirement affects all areas of your life, make sure you’ve had the following conversations before making the leap.

Talk to your spouse about your goals. For most people, the monthly budget changes after retirement. This change might necessitate a “downgrading” of lifestyle, a move to a more affordable home or geographic area, or a change in hobbies and spending. You should make sure you and your spouse are on the same page with regard to your budget and future goals.

Talk to your family about upcoming changes. If your retirement is likely to affect your children or other family members, talk to them, too. Give them fair warning if you plan to move, or if you need them to pick up the slack with regard to student loans, for example.

Talk to your boss about your plans. Obviously you will notify your boss well in advance of retirement, so that she can begin hiring and training your replacement. Express your flexibility and willingness to help, because you might find that leaving on good terms is beneficial to you later. This is also the time to review retirement benefits yet again, and explore alternative options like dropping down to half-time employment or offering consulting services on occasion.

Talk to a financial advisor about whether you can afford to retire. You should be having this conversations regularly, every few years as you prepare for retirement. But as your expected retirement date draws near, it’s time to kick your planning into high gear. Your financial advisor can help you calculate expected Social Security benefits, make a plan for retirement account withdrawals, and address your insurance needs.

With regard to insurance, you should examine your Medicare options, because healthcare is a leading expense for most retirees. You should also examine your life insurance needs, to ensure that your spouse is financially secure. You might also have other financial planning or insurance needs to discuss at this time.

On that note, give us a call. We can help you anticipate your retirement needs, and budget for this major life change.

949-858-7200 |