When Your Retirement is Just Around the Corner

After a long, successful, and rewarding career your retirement becomes a time for personal freedom. But along with this freedom, retirement also brings its own set of challenges — especially financial ones.

Below is a short checklist of the most important financial considerations you'll face as you approach retirement:

• Your pension benefits: The pension benefit you have built up throughout your career will become a key component of your retirement income. Find out what your benefits are, when you'll begin to receive them, and what income you can expect after you retire.
  
  
• Social Security: Should you take Social Security early at reduced benefits, or wait until you qualify for full benefits? Bear in mind that for many people, 65 is no longer the age at which they qualify for full Social Security benefits.
  
  
• Medicare and health care choices: As you get older, your health care choices will gradually become more important. Know what health care benefits you can expect from your employer after retirement. Also, take the time to learn about the different Medicare plans, including the new prescription drug benefit.
  
  
• Rollover decisions: Should you roll over 403(b) assets into an IRA? Do you have multiple retirement savings accounts to consolidate? These transfers can be troublesome if they're not done right. And IRS penalties for improper transfers can cost you a portion of your retirement savings.
  
  
• Required Minimum Distributions: It's usually a smart move not to touch assets in a 403(b) or IRA until you absolutely need them. But eventually, you will have to take required minimum distributions (RMD's) from these accounts. Know what the RMD rules are, and how you can manage these withdrawals effectively.

Dearborn & Creggs Can Help

If you are within five years of your planned retirement date, it's a good idea to put together a pre-retirement financial plan.

Your Dearborn & Creggs financial representative can help you make decisions that can lead you to a more comfortable and secure retirement. Call today to schedule a pre-retirement financial review.