Hey, my name is Chris and welcome back to Money Burst, and our quick retirement readiness guide that I've been breaking down for you decade by decade.
Today we've reached the big one. This is your 60s. All right, and as retirement is right around the corner, or perhaps you're already here, let's talk about how you can maximize these crucial years in your retirement journey.
By now you should have a clear idea of when you'd like to retire. The age you choose will impact a lot of other factors, like when to start taking your Social Security benefits. Remember, the longer you wait the larger your monthly benefit will be. But before you step into retirement it's a good idea to test out your planned budget. Try living on your expected retirement income for a year. It's important to find out if you can actually comfortably handle your expenses each and every month. If you find out that you're overspending, it's time to recalibrate.
You need to be realistic with yourself about what your retirement lifestyle is going to be. Will you be traveling more, going out to eat on the regular? Factor in everything because the more honest you are with yourself now, the more likely you will be to actually retire and stay retired.
One of the biggest financial shocks in retirement can be the price of health insurance. Especially if you're thinking of retiring before Medicare kicks in at the age of 65. I don't want you to underestimate this really big expense. Go out, research and understand your cost associated with your different health insurance options. This will help you avoid any unexpected out-of-pocket expenses, and make sure that you have the right coverage when you need it the most.
There you have it - navigating your 60s as you approach the goal of retirement that once felt like it was hundreds of years away out into the future. Throughout the series we've gone from our 20s right up to the doorstep of retirement. I hope this gave you some things to think about as you plan for the future.