Just retired? Congratulations! Here are some important points to consider in your first year of retirement, which could make an impact on your savings.
1. Your Social Security strategy
If you haven’t already filed, it’s important to have a good understanding of your options. There is no magic age that works for everyone. When you choose to claim Social Security completely depends on your situation. However, it’s important to understand that taking Social Security benefits too early is a common error and can have the greatest negative financial impact. The longer you delay, the larger your benefits.
2. Your plan for spending
Spending beyond what you have budgeted for can add up quicker than you might think! The more free time you have on your hands, the more time you have to spend your savings. It’s important to stick to a monthly budget of both fixed and discretionary expenses and try to not overspend.
3. Your long-term plan
With the average life expectancy continuing to rise, it’s important to be conservative in your spending so you don’t outlive your savings. This also makes for an even stronger argument for delaying Social Security benefits.
4. Your health care strategy
While most retirees will need some type of long-term care, many still make the mistake of not planning for this financially. If not done correctly, the likelihood of it being an overwhelming expense increases. This is one unexpected expense that can throw your retirement plan completely off track.
5. Your retirement plan
Shockingly, many retirees commit to a retirement plan that allows them to retire a little earlier with the commitment to continue working in some capacity, only to then not follow through on working. A retirement plan is like a puzzle with each piece having a significant role. Make sure you have all the pieces in place to make the complete picture.
Let's discuss your retirement strategy further to ensure you’re on track. Give us a call to set up your appointment today.