Category: Retirement

Top 3 Things to Consider When Retiring

Retirement should be a happy time in your life. But it can be overwhelming to figure out what you need to think about before leaving your 9-5 behind. As you get closer to retirement, make sure you consider the following three things: 

1. Prepare to be healthy and active for years to come.

There’s good news and there’s bad news here. The good news is that people are staying healthy and active longer with many retirees traveling and exploring well into their retirement. The bad news is that you’ll have to save more and spend less early on in retirement. It’s safest to assume that you’ll still be taking dance classes on cruises with your special someone after age 75. So, plan out your finances accordingly and enjoy the full length of your retirement.

For tips on how to save money today for your future retirement, check out our blog, “8 Tips for Creating a Successful Retirement Plan,” and visit our Medicare Learning Center to read 10 Quick and Easy Ways to Reduce Your Retirement Expenses.

2. Know when to collect Social Security.

Social Security will likely play a large role in your monthly income during retirement, so it’s important to know when it makes the most sense financially for you to start receiving your benefits. Collecting Social Security too early can significantly lower your monthly payment for life. However, if you wait too long, you may end up collecting less over time than had you taken the payment earlier. Knowing exactly when to sign up is a personal decision that should take health, income and genetics into account. Always talk to a financial advisor and do a little independent research before collecting Social Security.

For more information on waiting to claim Social Security, check out our blog, “Benefits of Delaying Social Security.” Looking for even more details on Social Security? Visit our Medicare Learning Center and check out A Beginner’s Guide to Social Security.

3. Understand your Medicare options.

With retirement comes Medicare. Medicare is a great resource for healthcare coverage, but many people falsely assume that they are 100 percent covered free of charge. Original Medicare includes Parts A (hospital insurance) and B (medical insurance), but there is a premium for Part B that is typically deducted from your Social Security check. In addition, Parts A and B only cover 80 percent of your medical costs and leave prescription drug, dental and vision coverage up to you. These extras, not included in Original Medicare, can add up quickly. The good news is, you have options to cover those extra costs. Research your options and pick a plan that best meets your needs.

To learn about the most common Medicare options, visit our Medicare Learning Center and read the 3 Most Common Medicare Options. For more information on Medicare basics, including your coverage options, visit the New to Medicare section of our website.

By taking these three things into consideration now, you can be better prepared for a more financially secure and enjoyable retirement.

Essence Healthcare