You're dreaming about retiring in 5 years or so. Here are a few things you need to consider.
Top 4 Things to Do
Budgeting for Retirement
Your budget depends on your lifestyle in retirement. How will you spend yours?
Income & Your Budget
A budget is pretty important, especially if you're thinking about retirement. And yours will likely change when you retire. Now you're saving for retirement, and chances are good that you may have some expenses drop off, like your mortgage or a car payment. You may spend more or less than you do now. So you need to have a plan for your money now and in retirement. Here's a quick look what that might include.
What's Coming In?
- Your pension
- Your Social Security benefits
- Income from your 457, 403(b) or IRAs
- Other income: Retirement plans or pensions from other employers | Business income | Part-time job
Expenses & Your Budget
As you’re making your budget, add up how much you need to pay the bills and subtract that from what’s coming in. Then factor in the fun stuff, like entertainment and travel. If you have enough to cover the essentials and then some, you’re probably on the right track. But if your estimate falls short, you may want to delay retirement.
- Taxes, utilities and home maintenance
- Health insurance & Long-term care insurance
- Medical bills and prescription costs
- Travel & Entertainment
Turning Your Savings Into Income
By now, you probably have a sizable nest egg to help support your retirement needs. In retirement, you’ll have a few options on how to use it. You can choose to draw income from your savings to maintain your lifestyle. This could mean funding travel or entertainment. Or you can keep your savings in reserve to help pay for insurance or future health care costs.
The important thing is to create a withdrawal plan that helps your savings last through retirement. You may want to visit with your KPERS 457 or other plan counselor, or contact a certified financial planner for help building your plan.