Have you started thinking about your Retirement plan? For most, the retirement plan consists of saving enough money to cover their life expenses after they stop working. More than likely, the retirement plan revolves around socking money away in investment accounts such as a 401(k), traditional or Roth IRA, a savings account, or real estate. Some may even horde cash in a savings account or CD.

In one sense, the retirement plan is about the money. But it’s not JUST about the money.

Other concerns abound besides having enough money to pay for housing, food, and other expenses. The money side is important but other issues can impact if have a fulfilling retirement. Addressing these ahead of time will make a big difference in how comfortable you feel and your family feels.

So before you start planning your retirement party, make sure you’ve addressed these important issues.

Retirement Plan Considerations

As you move towards retirement, think through the following issues so that they are settled before you punch the clock for the final time.

1. How Will You Fill Your Time?

Work has consumed your life for the last four to five decades. Now, you suddenly have your days free. That is bound to present some challenges.

You will no longer have your actual work responsibilities. And your off-hours won’t be spent thinking about work. You might have images of traveling, spending more time with your family, or pursuing a hobby. But do you really know how you will spend your days?

Before you stop working, think through how you want to spend your days as a retired person. It’s certainly valid to spend a few weeks or months relaxing. However, eventually your desire for something more fulfilling will emerge.

So make lists. Explore your options. Set goals before you retire to make the transition easier.

Additionally, avoid the feelings of being lost or unfulfilled that plague many retirees. This often leads them into depression or raises their desire to return to work.

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2. Make Your Estate Plan

For most of your career, your focus has been acquiring assets. But you may not have a plan on how to use them. You’ll need those assets in retirement. And maybe the bigger question for the retirement plan is “What happens to them at your death?”

This shift into a new phase of life is the perfect time to think about your estate plan. Every person needs to think this through. It doesn’t matter how much money you have to your name.

What does an estate plan include? It certainly starts with a will and designating beneficiaries to receive assets when you die. For more complicated financial situations, a trust may be in order. Additionally, you will want to consider things such as a living will and power of attorney. Both of those kick in if you can’t make decisions for yourself.

Your estate retirement plan is all about maximizing your assets to manage your life in the present, while ensuring your wishes are carried out upon your death.

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3. Proper Insurance Coverage in Your Retirement Plan

While the majority of Americans over age 65 qualify for Medicare health coverage, you need to make a few important decisions about your health coverage. You don’t want to rely on a government program to ensure that all of your needs are met. For example, you may opt to purchase a Medicare supplement plan to cover additional services, or a Medicare Advantage plan that will meet all of your needs with one policy.

You’ll have to choose a Part D plan to cover your prescriptions, as well. If your employer offers health Insurance to retirees, compare their policies to your Medicare options. You want to make sure you are getting the best deal.

Other Insurances

Health insurance isn’t your only concern, though. Most financial advisors strongly recommend that retirees purchase long-term care insurance at the age of 60. This covers assisted living or nursing home costs. More than 70 percent of older Americans do need some sort of long-term care, with the average stay before death being 3 years. The average cost of long-term care in a nursing home is $6,000 – $8,000 per month, depending on the state and type of room arrangement. So this coverage is a “must-have” good investment in your financial security.

If you do not have life insurance in your retirement plan, it is not necessarily too late to buy. It will considerably more expensive though. So maybe consider adding a small “final expense” policy that’s earmarked specifically for expenses related to your burial. Doing so prevents your loved ones from having to pay for your expenses out of pocket or take money from your estate.

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It’s also a good idea to review your homeowner’s and vehicle insurance policies. You may be paying for more coverage that you need. For example, if you are no longer driving your car to work every day, the lower mileage could qualify you for a lower insurance rate. Not to mention, there are specific insurance programs for retirees that offer comprehensive coverage at lower rates than you may be paying.

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Conclusion

Retirement is an exciting time. People look forward to it for years, even if “retirement” means days full of activity and in some cases, even a new career.

The more prepared you are, financially and emotionally, the happier and more fulfilled you will be when you are no longer working. So review your retirement plan to make sure you have all these things in place.

Leave a Comment or Answer a Question Below: When do you plan to retire and what do you plan to do? Is your retirement plan set up? What other things do you need to think about before retiring? Do you have a will or an estate plan ready?

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