Are you planning on retiring soon?
From tax laws to personal desires, health care, cost of living, and lifespan, making good financial decisions can drastically impact how comfortable you are in your golden years.
So, if you plan on retiring soon, keep reading below where we’ve compiled five key insights that help you retire stress-free.
1. Determine Your Retirement Age
Many people are unaware that Social Security benefits can begin as early as age 62. However, starting to dip into these benefits at 62 means that the payments will be smaller. Those who delay retirement to age 65 (or later) can expect benefit payments to be larger, as they will be divided up over a lesser time period.
To figure out how much you can expect from Social Security, be sure to check your statements online and how working for a few extra years could impact this number. For married couples, it is also important to consider how things like spousal benefits impact monthly earnings.
Knowing how much your benefit payments are can determine how much you need to save to supplement the income, or if the payments will be enough to solely live off of.
2. Know Your RMDs
Retirement accounts like traditional IRAs and 401(k)’s have Minimum Required Distributions (RMDs). RMSs dictate a specific age that you need to begin withdrawing money from the account. In 2025, the RMD age was 73, and those who are over this age and fail to withdraw are given steep penalties on the funds.
So, be sure to avoid losing any of your hard-earned money by being aware of the RMD age and planning your retirement around it.
3. Healthcare Costs
As we get older, suffering from health-related issues is bound to happen. That’s why preparing to face these issues in retirement is important, especially considering that most will be relying on a fixed income and savings for support.
To prepare, be sure to budget as far in advance as possible for things like Medicare premiums, supplemental insurance, long-term care, and prescriptions. Be sure to include these costs when calculating a monthly retirement budget, or consider opening a savings account that is specifically dedicated to healthcare. That way, you can protect retirement savings from being drained by an unexpected health scare.
4. Plan for Taxes
Taxes for the retired can actually be more complex than those who are still working, since not all retirement income is taxed the same. For example, withdrawals from traditional retirement accounts like Social Security are taxed at a different rate compared to investment income.
To prepare for this, it is critical to research the accounts you have so you know what the tax implications are. Knowing this information helps you to be strategic with when you make withdrawals and how much you should withdraw in order to limit the amount you’re taxed on it.
5. Have an Estate Plan
Estate plans are not just for the wealthy. In fact, anyone who is heading into retirement should think about getting their estate in order.
Documents like a will, trusts and beneficiary designations are all necessary to have in order to protect your assets and wishes. These documents will be used in the event you become incapacitated or pass on. Not having these documents usually causes confusion and stress on your loved ones since they will need to make decisions for you.
But, by taking the right steps now you can create a retirement plan that brings stability and peace of mind to you and your family.
If you’re approaching retirement age and need help making a financial plan give us a call at 407-328-5001 where our professionals can build a plan that’s right for you.
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