Most people spend countless hours planning their retirement before the big day finally arrives. After all, it’s not always easy to feel completely confident before you exit the workforce and enter your golden years.
With that in mind, here are six milestones you should aim to hit in order to feel more confident in your retirement plan.
One of the biggest concerns for retirees is whether they have enough money to survive without a paycheck.
Financial advisors often cite the ‘rule of 25’, which states that you can expect to retire comfortably if your assets are worth at least 25 times your annual expenses. However, this rule of thumb doesn’t guarantee how much you can spend each year, or how much income your assets will realistically generate every year in retirement.
It’s likely better to consult a professional financial advisor who can help you create a customized plan that accounts for your income, investments and expenses. A financial advisor can also help you change or modify your plan after you retire.
Carrying debt without employment income doesn’t often make for a fun retirement and, unfortunately, many retirees live with this unpleasant burden.
According to a survey from National Debt Relief, 72% of Americans over 55 have accumulated some debt, with more than half admitting it’s “held them back” in life.
With this in mind, you should plan to eliminate or minimize your non-mortgage debt before you retire.
One of the reasons many seniors have debt is because of unexpected medical expenses. The same National Debt Relief survey found that roughly 17% of seniors carry an average of $9,144 in debt due to outstanding medical bills.
Don’t underestimate just how expensive medical bills can be in your senior years. With this in mind, you’d be wise to set up a robust plan to deal with these medical costs before you retire.
Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here’s how he says you can best weather the US retirement crisis
If you have enough assets to retire, you may have something to leave behind for your heirs after you’re gone.
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