[Written by Carla Seely]
Start with your current financial situation, specifically pay attention to how you can start to maximize your income and begin to reduce your expenses. For a lot of people, planning for retirement normally starts about 5 years ahead of schedule.
Below is a helpful guide on areas that you should focus on.
[It is important to note that this is to give you an idea only and should not be the only checklist used].
5 Years to Retirement Date
a] Meet with your pension provider and make sure to discuss the following:
- Review you current pension plan account holdings.
- Consolidate any other pension plans into one account.
- Discuss the current rules and regulations regarding accessing your pension at retirement.
- Determine the benefits of making additional voluntary contributions if needed.
b] Review your bank account[s], if you have multiples do you really need them all?
c] Review your investment account[s]; review the asset allocations and make sure the investment allocations match your time horizon.
d] Review your insurance policies [i.e. life, home, car], do they reflect current values?
e] Update your will or visit a lawyer and have a will created and filed.
f] Update your beneficiaries on anything that has a listed beneficiary i.e. life insurance, pensions etc.
g] If you still owe anything; mortgage, car loan, credit cards – time to pay those off.
h] Look at your cash flow. Can you decrease your expenses and increase your savings?
i] Determine where your retirement income is going to come from?
- Rental collection
- Social insurance
2 Years to Retirement Date
a] Review your risk allocation on your pension plan and start lowering the risk level.
b] Crunch numbers for retirement income vs. retirement expenses to ensure positive cash flow.
c] Consolidate your bank accounts to make sure you are streamlined.
d] Start consolidating your investment accounts to ensure a clear investment strategy.
e] If retiring overseas; make plans for your first initial trip to look at potential retirement locations.
f] All debt should be paid off with no further intention of borrowing.
g] Renovations to your house should be completed.
h] Review your current cash flow and determine changes you will make at retirement.
i] Determine options for long term care needs.
6 Months to Retirement
a] Request information on the various pension options upon retirement.
b] Obtain information on individual health insurance from local providers.
c] Request a copy of your Bermuda Social Insurance monthly benefits plan.
d] Adjust any immediate insurance needs.
e] Finalize annual or monthly retirement cash flow options.
f] Finalise retirement budget for expenses.
g] Review investment allocations for positive cash flow options.
h] If retiring abroad make decisions on accommodations – renting vs. ownership.
i] Enquire about long term care especially regarding the cost of treatment locally or abroad.
a] Create your retirement folder with all your financial and insurance information.
b] Ensure you have a clear understanding of your retirement budget.
c] Plan for your retirement trip.
d] Have a retirement dinner with your family and friends to celebrate the next chapter.
e] If moving abroad, start packing.
- Carla Seely is the Vice President of Pension and Investments at Freisenbruch-Meyer, if you would like any further details please contact firstname.lastname@example.org or call 441 297 8686
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