Retirement Planning Checklist: 5 Years Until Retirement

The five years before retirement can be critical to your planning. While you can almost see the finish line, there’s still time to revisit and readjust your plan, if needed, refine your goals, and further develop your income and budgeting plan. Take a look at the following to better prepare yourself for your upcoming retirement.

1. Retirement Expenses: It’s not too soon to start estimating what your expenses will be in retirement, which is critical to determining whether you can afford to retire in five years. Try not to underestimate your post-retirement expenses. Many retirees see their expenses go up in the early years of retirement, when they’re still healthy enough to pursue activities they didn’t have time to enjoy while they were working. And if you plan to retire before age 65, you’ll need to budget for health insurance, too.

2. Cost of Living: To get a handle on your cost of living in retirement, comb through your credit card and bank statements to get an idea of how much you spend each month on everything from gas to groceries to pet care. Consider completely our Budget Analysis to estimate your expenses in retirement.

3. Understanding Your Income: Talk with one of our advisors to determine whether you’ve saved enough to afford your retirement plan. We can help you determine if you’re ready or if you might need to work a year or two longer to significantly enhance your retirement security.

• Add up sources of guaranteed income, such as Social Security and a pension, if you're eligible for one. If you don't have an online Social Security account, go to ssa.gov to set one up online.
• Review your Social Security earnings history to make sure you've received credit for every year you worked. 
• Partial or part0time work schedules might be a solution instead of quitting in five years. Have an open dialogue with our employer if changing your schedule to a few days a week is an option. If not, consider other part-time work. 

4.  Long-Term Care (LTC): Talk with one of our insurance representatives and compare coverage and costs for LTC. Premiums rise as you age, and if you wait, the cost could be too high.

5. Prepare for the Unexpected: Nearly half of retirees in the Retirement Confidence Survey confessed to retiring earlier than expected. Whether forced layoffs or health issues, some retire much earlier than they plan. Make sure you have at least one year’s worth of expenses in an emergency account so you don’t have to touch your retirement money and it can continue to grow.

Wherever you are in your retirement journey, let us help you stick to your 5-year plan. Contact one of our experienced advisors to see if you’re on track to retire in five years.

1 https://www.kiplinger.com/retirement/retirement-planning/602869/retirement-planning-checklist
2 https://www.ebri.org/retirement/retirement-confidence-survey