Are you planning to retire soon? If so, congratulations! Did you know that in the next seven years about a fifth of the U.S. population will reach the traditional retirement age of 65? For many, this is an exciting but also overwhelming time. So, here are three tips from Your Community Credit Union that will help you put your best foot forward in this next phase of life.
Maximize Employer Benefits
Determine your eligibility for a pension or other retirement benefits through your employer and consider maximizing contribution limits in your retirement accounts—you can save up to $30,000 in a 401(k) or $7,000 in an IRA.
If you still have an open 401k through a previous employer, contact the HR department with your details to connect you to those funds. Do you have health coverage through your job? Take advantage and schedule some dentist or doctor visits.
Determine Social Security Payment
Your social security benefits will probably be an important source of income for you during your retirement. Find out how much you can expect to receive in benefits by visiting SSA.gov. You may want to consider delaying your Social Security benefits to receive a larger monthly payment, if possible.
Examine Your Finances
While planning for retirement, it is important to assess your current debt and determine how much money you will need to cover basic needs, like housing, food, and healthcare. Do not forget to consider categories such as travel and hobbies as well. We suggest you draft a budget to help you visualize how much you can afford to spend and how much income you will have each month from Social Security, pensions, or part-time work.
Retirement is an exciting time! Your NC Community Credit Union is here to help any way we can!