Wondering how to prepare for retirement. Let’s walk through the four phases of a retirement timeline.
When you’re 10 years out, you want to define your retirement age and target savings, maximize contributions to your retirement accounts, and start evaluating future healthcare needs and potential costs.
When you’re five years out, you want to begin saving aggressively and prioritize paying down high interest debt. This is also a good time to review social security options and decide when you’ll claim benefits.
At three years out, create a detailed retirement spending plan and set up a bucket strategy for your investments. This approach divides your funds into short, medium, and long-term income needs to match your income goals.
When you’re one year out, you’re going to want to set up your healthcare plans, including Medicare if eligible. Also, confirm your social security and pension details. It’s also a smart time to establish an emergency fund for added security.
Following a timeline like this keeps you on track logistically and financially prepared so you can step into retirement with confidence.
