What to do When You're 5 Years from Retirement

When you are five years from retirement, there are ways that you can properly prepare to make sure that when retirement actually does come, you are ready for it.

Social Security

You want to make sure that you check in with social security. While you will have your own personal savings, you will want to see all aspects of your retirement income. Make sure to sign up for an online account so that you can see what you may be receiving when you retire.

Take it Slow

Many people often want to move once they retire. If you are apart of that category of people, then you will want to make sure to make the right decision. It is recommended that you get a short-term rental in the area for a few weeks at different times of the year (even tourist season for a bit). This will give you an opportunity to understand the area from all aspects. You also want to make sure that the location has everything you need. You may want to find clubs or centers that are great for seniors, make sure your healthcare can be managed at your new location, and that you have other necessities close to your potential new home. It is also important to understand the taxes of the area. How expensive is it to maintain life where you are looking to live? You need to make sure that you aren’t over-extending your retirement funds.

Talk to Professionals

Even if you have properly prepared for retirement, you still want to talk to a professional to make sure everything is planned out. You want to see the numbers and get a better understanding of the type of lifestyle you will be living once you retire. If you don’t like the outlook of how you will be living once you speak to a financial professional, you still have time to improve your situation! You will need to set a course of action but that is why five years is a good checkpoint.

Have Other Plans

Often times retirement doesn’t mean just sitting around and doing nothing all day. Instead, it means a change in day-to-day activities. Instead of going to work, you can opt to go volunteering. You can still find productive ways to have an impact of your life or the lives of others during retirement!

Think About Your Options

There are many different types of retirement. One popular type of retirement that people like to participate in is called “phased retirement.” This type of retirement gives your employer the ability to provide you a more flexible schedule and/or part-time hours. You are able to ease into retirement gradually instead of just flipping a switch. You should talk to your employer about their retirement options available.

Overall

You still have five years until it is time to retire. Take the time you need to make sure everything is set up and prepared for when you actually are no longer working and are living in retirement!