You have worked hard all your life and finally think retirement is in your near future. Retirement is a very exciting time in a person’s life. At Benefits Administrators, we want to make sure that you are prepared so that you can enjoy a relaxing and comfortable retirement.
Follow these tips to help ensure that you are ready for your upcoming retirement.
As stated in our previous blog post, “All About 401(k) Plans,” the maximum employee contribution for 2017 is $18,000. Usually, these contributions are made throughout the year as a payroll deduction. If you are planning for retirement in the New Year, it would be beneficial to double check that you have met your maximum contribution for your final year of employment.
If you are 50 years or older, you can make an additional $6,000 deferral to your 401(k) as well as the $18,000 in contributions. These types of contributions are called catch-up contributions.
Take a little bit of time to estimate your income. This income could be from social security, pensions or investments. When you have a better idea of the income, then you can prepare for your retirement costs.
Some expenses as you get older may become higher. For example, healthcare coverage could increase. Whereas, other expenses like clothing or daily commuting will no longer be as high. It is important to predict what kind of lifestyle you would like to have in retirement, so you can better prepare. If you plan to travel and sightsee during retirement, it would be important to budget and factor that into your expenses.
For more information about retirement planning, please utilize the IRS information at