The pandemic gave lots of us cause to consider retiring from the rat race! Many seniors (who officially are those of us over the age of 55!) however are reevaluating retirement, and Forbes Magazine has some input to help in the transition. At one end of the spectrum, seniors may postpone retirement to avoid withdrawing from retirement savings until later. Other seniors may find early retirement mandatory due to layoffs. Planning for each scenario may be the best bet as we progress post-pandemic.
Retirement accounts took a crazy ride during 2020, and there is no guarantee that more uncertainty isn’t possible in the future. Thinking about your risk tolerance may help you move more cautiously if continued volatility disrupts your retirement accounts.
Medicare at 65 is only the first step in your health care strategy. Couples may spend up to $300,000 on out-of-pocket expenses during their retirement years. Planning for the unexpected is essential to stay on course. Many recommend creating a retirement budget and living off that amount while still working. Again, it is a way to avoid surprises when you do ease out of the working world.