Are You Ready for Retirement?

By Senior Vice President John Clausen, JD, CFP

Like with all life decisions, there are a myriad of issues to consider, and deciding when to retire should be a balanced decision that weighs a variety of key factors. The checklist below can help you begin the process.

  • Determine a retirement vision and lifestyle. Is this vision and lifestyle shared by your spouse or partner?
  • Consolidate accounts (401(k)s and IRAs) to understand the totality of your resources in retirement.
  • Create a retirement budget that includes necessities (food, water and electricity) and activities most important to you (e.g., travel), to help you calculate approximately how much annual income you will need.
  • Determine how much of your annual retirement income will come from retirement savings, pensions and other resources.
  • Understand Social Security benefits and when to begin receiving payments.
  • Estimate your tax bracket in retirement.
  • Explore your health insurance options in retirement. Ensure you have enough resources for out-of-pocket health care costs.
  • Explore long-term care insurance and see if it can play a viable role in your retirement plan.
  • Update beneficiary information on insurance policies, retirement accounts, etc.
  • Complete estate planning documents such as a will, trust, durable power of attorney and health care power of attorney and directives.

Seem overwhelming? Need help getting started? Call me at 217-351-2870 or email jclausen@bankchampaign.com. As a Certified Financial Planner, I have the additional training and knowledge to guide you through the process.