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Planning Your 2025-2028 Retirement: The 7-Step Process

Planning Your 2025-2028 Retirement: The 7-Step Process

May 30, 2024


Planning Your 2025-2028 Retirement: The 7-Step Process

If you’re gearing up to embrace golf and master pickleball when you retire in 2025, it’s time to engage in thoughtful retirement planning preparation. As you step into this exciting phase of life, consider the following list to ensure a smooth transition to retirement bliss.

Assess Your Financial Landscape:

Take a deep dive into your current financial situation. Examine your spending habits, housing costs, outstanding debts, savings, investments, and anticipated healthcare needs. Reviewing your credit card charges over the past year will provide insight into potential adjustments needed for retirement life.

Rethink Spending Patterns:

Consider how retirement might reshape your spending patterns.  For instance, if you had to “dress for success” throughout your career. In retirement, you may replace your dress clothes with a less expensive bathing suit and flip-flops.  Others may find themselves in a walkable downtown without needing a second car. Whatever your situation, work with your significant other to identify and trim unnecessary expenses, fostering a financial plan that aligns with your retirement goals.

Evaluate Housing Costs:

Determine if housing costs will remain stable or decrease due to downsizing or relocation. If you’re migrating south, weigh the reduction in heating bills against the potential increase in cooling expenses or home insurance premiums. Seek advice from friends and explore online communities to gather insights on your desired retirement location.

Tackle Debt Smartly:

Entering retirement with significant debt is stressful and challenging. Having to pay interest in retirement on a depreciating asset such as a luxury car or significant credit card balance is punitive when you’re trying to find peace in your post-work years.  If you have debt, look to pay off the highest-interest loans first and work with a financial planner to see if you should push off retirement a bit until the debts are paid off. 

Master Medicare:

Understanding Medicare supplements is crucial. These coverages fill gaps left by Medicare Part A and B, addressing costs like deductibles and coinsurance. Research and choose the most suitable supplement for your needs, factoring in considerations like Medicare Part D prescription drug plans for more comprehensive coverage.

Run Retirement Projections:

As retirement looms within a year, conduct realistic financial projections. Account for after-tax returns on investments, Social Security, pension benefits, and any potential part-time income. Include inflation adjustments and consider the possibility of long-term care expenses. Collaborate with your financial planner to ensure accuracy.

Portfolio Optimization:

Optimize your investment strategy in line with your retirement plans. A proper financial review will consider how well your cash and investments align with your financial goals and risk tolerance. A well-thought-out financial plan, including investment adjustments, helps provide a secure foundation for your retirement income strategy.

As you begin these seven steps, envision the clarity it will provide as you transition to your new life in 2025 and beyond!