3 Tasks to Do If You Are Nearing Retirement

If you are a few years away from retirement, then it’s a good idea to get your finances straightened in order to make this life-changing transition as easy as possible.

So, here are 3 tasks that you must do when you are nearing retirement:

#1: Review your Company Benefits

While your 401(k) plan might be the biggest benefit you receive, there are other that you must check with. For example, you should ask your employer whether you can continue the insurance options that are a part of your package. Or even check for stock options that you haven’t exercised as yet. As for your 401(k) plan, think about whether you’d want to move into an individual retirement account or avail of a distribution.

#2: Understand your Social Security Benefits

With Social Security, what you must decide is when you should begin to avail of your benefits. You can choose to avail of your benefits at the age of 62 and before the full retirement age or take it at 70. The only difference being you’ll get more money for the latter. If you are married, then you can decide who takes their benefits when too.

#3: Compare your retirement income to how much you’ll need

While this might seem simple enough, very often many retirees don’t bother to do this and plan for retirement accordingly. Make sure you total how much money you will make from your Social Security benefits, incomes from part-time work or consulting and compare to how you think you are going to need to survive every month. As a rule, if the gap is more than 4%, then you will need to plan working longer or readjust your financial priorities.