You’re five years from retirement and you’re getting excited, making plans for your life after your career. This is a critical period in laying the financial groundwork to realize those dreams. In our last article, we detailed steps to take when you’re 10 years out from retirement. Today we’ll follow up with your road map for the five years before you retire.
Review Your Plan
The five-year mark is a good time to meet with your financial advisor. Together you can review your plan and make sure your savings are still on track or decide on adjustments to make up for any shortfalls.
Estimate Health Care Costs
Health care costs are expected to rise for the foreseeable future. Estimate your out-of-pocket medical expenses after Medicare benefits. Will you be able to cover them? It’s a good idea to discuss strategies with your financial planner.
Create a Long-Term-Care Plan
With Americans’ increased longevity, more of us than ever will need long-term care at some point. Analyze your potential scenarios and costs for care. Buy long-term-care insurance as appropriate given your life expectancy and assets.
Do you want to stay in your home when you retire? Or will it be an ideal time to downsize? You and your spouse should consider your options and plan accordingly.
Retirement planning is complex. Health care and long-term care especially can offer unexpected costs in retirement. That’s why you want to plan thoroughly. If you’re feeling overwhelmed by these or any other needs in retirement, feel free to reach out to us. We offer comprehensive retirement planning and would be happy to work with so you can feel confident that you are on the right track for the retirement you envision.