We\u2019ve partnered with\u00a0Retirement Simplified powered by Silvur<\/a>\u00a0to put control back in your hands, on your terms. Retirement Simplified speaks your language as it teaches you how to retire. Use the tips (and downloadable checklist) below to learn how you can prepare for retirement \u2014 no matter what your savings look like now.<\/p>\n (Psst \u2026 ICCU members get FREE access to Retirement Simplified<\/a>. Not a member?\u00a0Sign up for ICCU<\/a>\u00a0today.)<\/p>\n There are a lot of moving parts involved in retirement prep, which can make the whole process a little hard to digest. But if you break the big ol\u2019 retirement elephant into a few bite-sized chunks, you may find that your retirement goals are more achievable than you thought.<\/p>\n We designed this 10-Step Retirement Checklist to help you do just that. Use this list as a jumping-off point and keep in mind that you\u2019re in control of your own financial journey. Feel free to rearrange these items to better fit your circumstances and objectives.<\/p>\n (Download the\u00a010-Step Retirement Checklist<\/a>)<\/strong><\/p>\n To learn about how retirement recommendations can differ by age, check out Retirement Simplified\u2019s guides to retiring by\u00a060<\/a>,\u00a065<\/a>, or\u00a070<\/a>.<\/p>\n Ready to tackle the first step of retirement prep? Retirement Simplified\u2019s\u00a0Retirement Score<\/a>\u00a0is a good place to start. In about 5 minutes, Retirement Simplified can give you a personalized estimate of when you can retire, plus when (or if) your retirement savings will run out.<\/p>\n Source: Retirement Simplified powered by Silvur<\/em><\/p>\n We recommend checking your score whenever you hit a major milestone \u2014 that way, you can see how each financial decision affects your retirement. Check your score now to get a baseline measurement, then watch your score improve as you prepare to retire.<\/p>\n As an ICCU member, checking your Retirement Score is quick and easy. Retirement Simplified will ask you a few get-to-know-you questions, like your name, age, and expected retirement date. To give you an accurate prediction, it will also ask about existing income, investments, and contributions. (Estimates are fine!) Rest assured, Retirement Simplified will NOT ask for sensitive information like SSNs, driver\u2019s licenses, or bank account numbers.<\/p>\n Just like any good savings plan, your retirement budget should include two main things: income and expenses. But that\u2019s where the similarities end. With unique accounts, extra regulations, and limited income,\u00a0retirement budgeting<\/a>\u00a0can become a tricky beast. Here\u2019s how to tackle it.<\/p>\n Whether you genuinely enjoy working or just like the extra money and benefits, a part-time job can drastically extend your retirement savings. In fact, your experience and knowledge can help you find a variety of job opportunities:<\/p>\n (Read:\u00a0Working Part Time Impacts Your Benefits<\/a>)<\/p>\n If you don\u2019t plan on working during retirement, passive income might be a good alternative. Unlike wages, passive income typically generates revenue on its own and doesn\u2019t require daily effort to maintain. Examples include:<\/p>\n Keep in mind that passive income can be more difficult to obtain and less reliable than an hourly wage. But when combined with time and preparation, it has provided many retirees with financial independence.<\/p>\n Data is provided by The United States Census Bureau (2021). Median and average incomes are rounded to the nearest thousand.<\/em><\/p>\n For most, income also includes contributions from various accounts, like a pension fund,\u00a0traditional 401(k), or Roth 401(k)<\/a>. To track those contributions, contact your current and previous employers. Their HR departments should give you access to your account balances and payment histories. Keep track of your logins so you can access the accounts later \u2014 we recommend checking them at least every six months.<\/p>\n (Read:\u00a0Social Security 101<\/a>)<\/p>\n No matter which way you slice it, retirement is ultimately one thing: expensive. While retirees tend to spend less than workers in categories like food and housing, they face much higher medical and\u00a0insurance costs<\/a>, to name a few.<\/p>\n To plan for that\u00a0shift in spending<\/a>, you should first envision what you\u2019d like your retirement to look like. Do you, for example, expect to travel more? If so, it might be wise to set up a\u00a0high-yield savings account<\/a>\u00a0now to prepare for those future costs.<\/p>\n When calculating your retirement expenses, consider these factors:<\/p>\n Numbers are provided by Retirement Simplified. Because most couples retire at different ages and with different savings, we suggest you use this chart for general cost-of-living comparisons rather than a hard and fast rule. Find your Retirement Score for a more personalized estimate.<\/em><\/p>\n Once you\u2019ve got the nitty gritty details of your income and expenses settled, it\u2019s time to give it a test drive. Though you may not be able to test out everything in your retirement plan \u2014 like\u00a0Social Security<\/a>\u00a0and other contributions \u2014 you can see if you\u2019ve set a reasonable budget in other ways.<\/p>\n First, calculate your expected monthly spending allowance, then try to live off that amount for 4\u20136 months.<\/p>\n This is a risk-free way to get a glance into the future of your retirement. If, after a few months, you realize your estimates were off, no worries! Better to have that info now than later. Make a few adjustments and try again until you get it right.<\/p>\n Meanwhile, you can put any extra earnings into an\u00a0emergency fund<\/a>, which will be an invaluable resource as you transition from your full-time job.<\/p>\n If you\u2019ve ever researched healthcare costs in retirement, you probably know that the recent pandemic and\u00a0inflation spike<\/a>\u00a0have made things look pretty bleak. According to a 2022 data report by\u00a0HVS Financial, the average 65-year-old couple\u2019s retirement healthcare costs will likely increase by nearly $86,000 for a grand total of $673,587. Scary, right?<\/p>\n But before the panic sets in, it\u2019s important to remember two key things:<\/p>\n Health Savings Accounts are what Retirement Simplified likes to call a\u00a0triple tax threat<\/a>. This is because:<\/p>\n The money in an HSA rolls over from year to year. If you retire before 65, Retirement Simplified recommends using your HSA to cover things like long-term care insurance and COBRA premiums. After 65, you can use it for Medicare and most other medical expenses.<\/p>\n (Read:\u00a0ICCU\u2019s Ultimate Guide to Medicare<\/a>)<\/p>\n At some point in your retirement, there\u2019s a\u00a0good chance<\/a>\u00a0you\u2019ll need someone to help you with daily living tasks. That\u2019s where long-term care comes in.<\/p>\n Though it may seem more prudent to save for immediate retirement expenses like housing, don\u2019t let your\u00a0LTC savings<\/a>\u00a0fall by the wayside. By buying LTC coverage as early as your 50\u2019s or 60\u2019s, you\u2019ll generally get more affordable premiums.<\/p>\n To prepare for the cost of LTC, consider getting long-term care insurance. Some life insurance policies include LTC, so if you have a\u00a0life insurance policy<\/a>, be sure to check that first.<\/p>\n Wondering if you need life insurance? Retirement Simplified wholeheartedly recommends it. Your policy will act as a safety net for your loved ones if you pass away unexpectedly or are diagnosed with a terminal illness. It can cover basic household costs, medical bills, and final expenses, to name a few.<\/p>\n (Read:\u00a0Life Insurance in Retirement<\/a>)<\/p>\n Benjamin Franklin\u2019s famous quote, \u201cNothing is certain except death and taxes,\u201d is unfortunately even truer when you retire. That\u2019s why we recommend getting your important documents in order right before retirement.<\/p>\n Create or update your will, then find a healthcare power of attorney. It\u2019s a big task, but it will give you peace of mind once it\u2019s done. You may also want to add a living will, which will give you more control over your life in case you can\u2019t speak for yourself before you die.<\/p>\n While you\u2019re at it, update the beneficiaries on your various accounts, including bank accounts, insurance policies and\u00a0retirement funds<\/a>. Look into pre-paid funeral plans and even a final disposition so you can dictate what will happen to your remains.<\/p>\n If this is all a little overwhelming, you can hire an attorney who can sort most of this out for you. But if you\u2019d like to tackle this on your own, there are a variety of online legal tools that will help.<\/p>\n Note:<\/strong>\u00a0Store all these important papers in a safe place! Add any documentation you may have on your mortgages, investments, etc., then tell someone you trust about its location.<\/p>\n You\u2019re in charge of how and when you retire. We\u2019re just here to equip you with the right tools to make that retirement a reality. As an ICCU member, you get all the resources listed in this article\u00a0(and more)<\/a>\u00a0for FREE. No catch.<\/p>\n Not an ICCU member?\u00a0Join today<\/a>\u00a0for more financial perks and education.<\/p>\n Download the ICCU app<\/a> or log into eBranch<\/a> to sign up for Retirement Simplified powered by Silvur, you\u2019ll get access to dozens of lessons about retirement, including topics like healthcare, taxes, Social Security, and insurance \u2014 plus a personalized Retirement Score. Take control of your retirement with ICCU and Retirement Simplified. Your future self will thank you.<\/p>\n","protected":false},"excerpt":{"rendered":" Saving for retirement can feel a lot like starting an important project\u2026 only to realize that your user manual is […]<\/p>\n","protected":false},"author":5,"featured_media":12321,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_searchwp_excluded":"","footnotes":""},"categories":[89],"tags":[203,344,345,346,347,348],"class_list":["post-11421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-education","tag-retirement","tag-healthcare-in-retirement","tag-how-to-save-for-retirement","tag-prepare-for-retirement","tag-retirement-budget","tag-retirement-savings"],"acf":[],"yoast_head":"\nYour Retirement Checklist<\/h2>\n
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<\/p>\nRetirement Simplified\u2019s Retirement Score Explained<\/h2>\n
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<\/p>\nHow It Works<\/strong><\/h3>\n
How to Budget for Retirement<\/h2>\n
Find Creative Sources of Income<\/strong><\/h3>\n
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<\/p>\nMinimize Expenses<\/strong><\/h3>\n
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<\/p>\nPut Your Budget to Work<\/strong><\/h3>\n
How to Prepare for Healthcare Costs in Retirement<\/h2>\n
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Fully Fund Your Health Savings Account (HSA)<\/strong><\/h3>\n
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Research Long-Term Care (LTC) and Life Insurance<\/strong><\/h3>\n
How to Plan Your Estate<\/h2>\n
Take Control of Your Retirement<\/h2>\n