Steps as you’re nearing retirement
Are you ready for the next phase of your life? Watch our video to help you begin planning as you get closer to retirement.
Nearing retirement
Is retirement creeping up on you? While you may feel excited for this next chapter, it can also be overwhelming with so many factors to consider. Check out our resources below for specific actions that you can take today to help you start preparing for the retirement you envision.
Need a little extra help? Download our checklist to help you stay organized and on track.
Steps to prepare for retirement
- Build a budget. Knowing where your money goes can help you spend wisely and save consistently. Get started by building your budget with Voya’s Budget Calculator.
- Build an emergency fund. Life is full of surprises. Shield yourself from the unexpected by building an emergency fund to cover three-to-six months of expenses. The more you have saved, the better. To help save time, consider automated saving options.
- Get out of debt. Imagine what it will be like when you don’t owe anyone anything. Along with saving for your emergency fund, if you have any personal debt, credit card debt or student loans consider committing to paying it down.
Consistently saving as much as you can for retirement now may pay off later. Here are a few ways to keep saving for retirement, log in to your account to get started.
- Contribute to your employer-sponsored retirement plan or open an IRA.
- If your employer offers matching contributions, take advantage of them.
- Consider a Roth IRA or Roth contributions to your employer’s retirement plan for a more flexible way to save for retirement.
- Stay on track with automated savings options.
- Conduct an annual review of your investments to ensure they continue to match your goals.
- If you are 50 or older, save more for retirement by taking advantage of “catch up” contributions. Check out our IRS limits page to see the latest on how much you can contribute.
It’s important to think about the connect between saving for retirement and the benefits you select. While these products may have distinct goals, it’s beneficial to consider their overall impact on your life.
Protect today:
- Health insurance. Simply put, health insurance is a must for just about everyone. Make sure you understand your cost and coverage options to select a plan that works for you and your family.
- Health Savings Account (HSA). If you have a high deductible health plan, HSAs can be used to pay for eligible medical expenses today and in retirement, as long as you have money in your account, but they make great resources as well. If you're able to save funds in your HSA long-term, you can see exponential, tax-free growth over time.
- Protect your earnings. What would happen if you were unable to work due to an illness or injury without any other coverage to help cover your bills? Short and long-term disability income insurance may cover a portion of your income when you are unable to work due to an illness or injury, which could last a few weeks or as long as a year, or more. Your employer may offer this insurance without any cost to you.
- Supplemental health insurance. These types of insurance can help you manage the uncertainty of high deductibles and out-of-pocket expenses. Critical illness insurance, accident insurance and hospital indemnity insurance can provide a benefit for a covered event, helping you focus on your health and your family.
Protect tomorrow:
- Life insurance. If something unexpected happens to you, life insurance can provide much needed support for your loved ones. Learn more about the different types of life insurance and how much you may need.
- Long-term care insurance. This type of coverage can help if everyday activities start to become difficult to handle. Long-term care can help pay for a variety of home care, assisted living or nursing home needs.
- Estate planning. Think estate planning is just for the wealthy? Think again. Learn more about wills and trusts to help your things in the hands of your loved ones and your loved ones in good hands.
There are some important questions you will need to answer in this phase of your life, so be sure you have the information needed to make decisions for your unique circumstances.
- The million dollar question — When should I retire? There are a lot of factors that go in to deciding when is the right time to retire. You’ll need to consider what you want your retirement to look like and how long your savings will last.
- How will I live off my savings in retirement? It starts by creating a retirement income plan to create steady income from your savings.
- When is the right time to apply for Social Security? Keep in mind the answer is not the same for everyone, so it’s important to understand what your benefits will look like at early retirement age, full retirement age and maximum benefit age.
- What are my healthcare options, if I’m not 65? Learn more about your health insurance options if you plan to retire before age 65 and won’t qualify for Medicare.
Storing your data in an easily accessible, secure space will help you and loved ones find important information when it’s needed. Suggested list of information to store in one place:
- Your monthly budget with income, spending and saving plans.
- Saving and investing accounts as well as any other assets you own.
- Important documents such as life insurance policies, wills, trusts, powers of attorney, health proxies and tax information.
- Contact information for financial professionals you work with — e.g., tax preparer, banker, insurance agents.
This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/insurance decision.
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