Retirement Planning Checklist: 10 Key Financial Steps to Take Before You Retire

Disclaimer: This content is for informational and educational purposes only and does not constitute financial or career advice. It should not be relied upon as a recommendation for any specific financial action. For personalized guidance based on your individual circumstances, please contact the professionals at Round Rock Advisors.

Retirement is a major life transition, and preparing for it involves more than choosing a retirement date. There are several financial considerations to review before leaving the workforce, from understanding your potential income sources to organizing your expenses and important documents.

For individuals and families in Wilton, CT, and throughout Fairfield County, having a clear picture of your financial circumstances can make the transition into retirement easier to navigate.

This retirement planning checklist highlights key financial areas to review before you retire.

1. Review Your Retirement Income Sources

One of the first steps in retirement planning is understanding where your income may come from after you stop working.

Depending on your individual circumstances, potential retirement income sources may include:

• Employer-sponsored retirement plans
• Individual retirement accounts (IRAs)
• Social Security benefits
• Pensions
• Personal savings and investments
• Other sources of income

Understanding these different sources can help provide a clearer picture of the financial resources that may be available during retirement.

2. Review Your Current Expenses

Your spending habits may change when you retire. Some expenses associated with working may decrease, while other costs—such as travel, hobbies, healthcare, or helping family members—may change or increase.

Creating a detailed picture of your current expenses and considering how they could change in retirement can be an important part of preparing for the transition.

3. Consider Your Healthcare Costs

Healthcare is an important consideration in retirement planning. Medicare eligibility, supplemental coverage, prescription costs, and other healthcare expenses can all factor into your financial planning.

Before retirement, take time to understand what healthcare coverage may be available to you and what expenses you may need to account for.

Because healthcare needs and coverage options vary from person to person, discussing your individual circumstances with the appropriate qualified professionals can help you understand your options.

4. Review Your Retirement Accounts

Take inventory of your retirement accounts and make sure you have a clear understanding of what you own and where those accounts are held.

This may include reviewing:

• 401(k) and 403(b) accounts
• Traditional and Roth IRAs
• Pension accounts
• Other employer-sponsored retirement plans

It’s also an opportunity to ensure your account information and beneficiary designations are up to date.

5. Understand Potential Social Security Benefits

Social Security can be an important component of retirement income for many Americans. Before retiring, review your Social Security record and understand the benefit information available to you.

The timing of when someone claims Social Security can affect their benefits, so individuals should consider discussing their specific circumstances with qualified professionals and reviewing information directly from the Social Security Administration.

6. Organize Your Financial Documents

Retirement planning can involve numerous financial accounts, insurance policies, tax documents, estate-planning documents, and other records.

Organizing important paperwork can make it easier for you—and potentially your family or other authorized individuals—to understand your financial affairs.

Consider keeping a current record of your:

• Bank and investment accounts
• Retirement accounts
• Insurance policies
• Estate-planning documents
• Tax records
• Property information
• Important financial contacts

7. Review Your Estate Plan

Retirement planning and estate planning often go hand in hand. Before retirement, review important estate-planning documents and beneficiary designations to ensure they continue to reflect your current circumstances and wishes.

Depending on your situation, relevant documents may include a will, trust, power of attorney, or healthcare directive.

Estate-planning documents should be reviewed with an appropriately qualified estate-planning professional.

8. Think About Your Retirement Goals

Retirement isn’t just a financial milestone—it’s a lifestyle change. Consider what you envision your retirement looking like.

Will you travel? Spend more time with family? Pursue hobbies? Relocate? Continue working part-time?

Thinking through these goals can help provide context for the financial conversations you have as you approach retirement.

9. Build Your Retirement Planning Team

Retirement planning can involve several areas of your financial life, including investments, taxes, insurance, Social Security, and estate planning. Depending on your circumstances, you may work with multiple qualified professionals to address these areas.

A financial advisor can help you understand how different elements of your financial picture fit together, while tax and legal professionals can address questions specific to their areas of expertise.

10. Create a Retirement Planning Timeline

You don’t have to tackle every aspect of retirement planning at once. Creating a timeline can help you keep track of important tasks and deadlines as your retirement date approaches.

Depending on your circumstances, your timeline might include reviewing retirement accounts, gathering Social Security information, evaluating healthcare coverage, organizing financial documents, and meeting with the professionals who can help you address your specific needs.

Preparing for Retirement in Wilton, CT

Retirement planning involves many moving pieces, and every individual’s financial circumstances are different. A thoughtful review of your financial picture can help you enter retirement with a clearer understanding of the questions and decisions ahead.

Round Rock Advisors works with individuals and families in Wilton, CT, and throughout Fairfield County on comprehensive financial planning and retirement planning.

If you’re approaching retirement and want to better understand your financial picture, contact Round Rock Advisors to learn more about our financial planning services.