Hi everyone, this is Kayden Besher with Burgdorf Wealth Managers. Today’s Minute on Wealth is for those planning on retiring next year.
First of all, congratulations! This is a huge milestone. But before you officially step into retirement, you want to be ready. Here are 5 steps to take.
Step 1: Check Your Retirement Income Plan
Start by looking at your sources of income. This could include Social Security, pensions, investment accounts, and any other savings. Confirm how much will come in each month and compare that to your expected expenses. This ensures you have enough to maintain your lifestyle.
Step 2: Review Your Social Security Strategy
If you haven’t already claimed Social Security, evaluate your options. The age you start collecting benefits can make a significant difference in your total lifetime income. A well-timed strategy could add thousands of dollars over your lifetime.
Step 3: Revisit Your Healthcare and Medicare Coverage
Healthcare is often one of retirement's biggest expenses, so it’s important to plan ahead. If you’re 65 or older, you’ll want to explore your Medicare options and consider whether supplemental coverage makes sense. If you’re retiring before 65, make sure you have a plan for health insurance until Medicare kicks in.
Step 4: Understand the Tax Impact of Retirement
Retirement doesn’t mean you stop paying taxes. It just means your tax situation changes. Withdrawals from retirement accounts, Social Security benefits, and even investment gains can all have tax implications. Take time to understand what will be taxed and what impact that will have on your retirement income.
Step 5: Protect What You’ve Built
Review your estate documents, like your will, trust, and beneficiary designations, to make sure everything reflects your wishes. And don't forget about financial security. As our client, you get access to Carefull, a service that monitors your accounts, identity, and credit for fraud or errors.
Taking these steps now will help you step into next year ready for what’s ahead.
If you’re planning to retire in 2026, now is the perfect time to schedule a review with our team. We’ll help you ensure your retirement plan fits your needs and goals for years to come.