Throughout your life, you’ve likely dreamt about what your retirement will look like. There are many possibilities about what you can do with your time, where you can live and what your income and finances will look like.
As you get closer to retirement, there are several key things you should have a firm grasp on. Keep this list in mind as you work to get ready for retirement.
1. How Much You Have Saved
Whether you have an employer-sponsored retirement savings plan, a personal plan that you opened or both, it’s important that you know how much you have saved You’ve likely looked at your accounts a few times a year for the last few years, but now is the time to get a deeper understanding of how much is in these respective savings accounts.
2. When You’re Planning on Receiving Social Security
You are eligible to begin using Social Security benefits at 62, but that doesn’t mean you are required to start taking benefits then. In fact, if you wait until you are 70, you receive more benefits. Instead of assuming that you’ll begin taking Social Security at the earliest availability, consider when it would be most beneficial to start taking your social security. *
3. Where You Want to Spend Your Retirement
In retirement, your priorities may change. Whereas you may have lived in one place for your whole career, you may want to move in your golden years. Consider what you want your retirement to look like, what you want to do, how you want to spend your time and even where your savings will go the furthest.
4. What Your Retirement Income Will Look Like
Retirement income can come in many forms. You may be living off what you have saved, you may decide to get a part-time job or you may rely on Social Security for your source of income. As you get closer to retirement, consider where your income will come from and if you need to make any adjustments to your portfolio or lifestyle.
5. How Much Your Retirement Income Will Be Taxed
Even when you leave the workforce, there will still be taxes on your income that you’ll be responsible for paying. Depending on what your retirement income plan looks like you may have to pay taxes on distributions for your retirement saving accounts, taxes on Social Security income and taxes on your pension. Before you retire, know what your tax liability is based on factors like your filing status, your retirement income sources and your total annual income.
*This information may not be relied on for the purpose of determining your social security benefits or eligibility, or avoiding any federal tax penalties. You are encouraged to seek advice from your own tax or legal professional.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisors LLC nor any of its representatives may give legal or tax advice.
5 Things You Should Know Before Retiring
July 05, 2022