February 19, 2021

When is the Right Time to Retire?

How to plan for retirement in the COVID-19 world

Prepare your finances

Try to estimate your total annual spending. Then, add up all your potential sources of income you get from your pension, Social Security, as well as other assets that you own. Some advisors recommend that you have enough in your savings to cover the first few years of retirement. Make sure you have enough saved so that you do not have to rely solely on Social Security benefits.

Get debt under control

It is not uncommon for retirees to still hold a mortgage or car loan. However, it is best to pay off all outstanding loans before you retire. That way you only have to worry about paying future expenses with your retirement funds. Having minimal to no debt is ideal as it allows you to use your savings and retirement income on your retirement plans.

Confirm health insurance

Even prior to COVID-19, healthcare costs were one of the main expenses retirees dealt with. Healthcare has become even more important in the COVID-19 world. Keep in mind that only adults 65 years old and above are eligible for Medicare. An unexpected hospital stay without proper coverage could affect your finances and plans for retirement.

In the COVID-19 world, the future is still uncertain. If you’re considering retiring this year or making plans to retire soon, start researching, budgeting, and developing strategies to best prepare yourself to reach your retirement goals. If you have questions about planning for your retirement, speak to a personal banker at your local branch.