Having recently retired after a long and satisfying career, I’m now able to look back on financial preparations I made for this new phase of life. And, on preparations I wish I’d made!
What preparations did I make in the years prior to retiring?
- Contributed as much as financially possible to my employee retirement accounts for several years prior to retirement
- Reviewed my anticipated income from Social Security
- Checked anticipated income options from my employee retirement accounts
- Enrolled in Medicare Part A at age 65
- Investigated options and costs for Medicare Supplemental Insurance
- Created a projected budget for needed cash flow throughout each year of retirement
- Factored in additional expenditures for travel, health insurance costs and inflation
- Updated my will, advanced directives, and other legal documents, correcting them as needed
- Made certain I had an emergency fund for unanticipated expenses
- Analysized insurance coverage for personal property
What other preparations should I have considered more thoroughly?
- Dental and Vision Insurance. Medicare does not cover these physical needs. I thought I had my teeth in good shape and had purchased new glasses when I had coverage for these items through my former employer’s insurance plans. Following retirement, I had not planned to continue these forms of insurance. Within the first year of retirement, I unexpectedly needed a root canal, a tooth extraction, and an implant, all of which were totally out-of-pocket expenses.
- Costs affiliated with volunteering. I’m a strong advocate for volunteering in one’s community in order to have a fulfilling and purposeful life. While I love not commuting to and from work anymore, I find myself in the car frequently as I travel to volunteer commitments. Thus my transportation expenses have not decreased as much as I’d anticipated.
- Increased utility costs. Because I’m eating more meals at home, we run the dishwasher more frequently. Instead of turning the heat down during the day, the temperature stays the same for comfort. And, I’m doing more laundry because I’m wearing more casual, washable clothes.
Preparing for retirement prompts many financial considerations. While we can’t anticipate absolutely every expense, it’s important to project as many expenses as possible. Knowing that you have adequate income and insurance protection gives a great peace of mind in order to enjoy this new phase of living.
