If you've spent the past several decades working and are looking forward to retiring in 2015, the last thing you probably want to hear is that there's more work ahead. But a successful transition to a secure retirement is well worth the extra work and preparation.
Here are five steps to prepare for a 2015 retirement:
1. Craft a monthly budget or spending plan
A budget or spending plan helps determine what you expect to receive in retirement income vs. your anticipated living expenses. Open a notebook or a spreadsheet and, in one column, write down your expected monthly income, including Social Security, pension and withdrawals from your retirement funds. In a second column, estimate your average monthly expenses, which gives you a framework of your finances.
"Take a test run first," says Curtis Sheldon, a financial planner based in Alexandria, Va. "If you can, try living on what you expect your retirement living expenses to be. Can you do it?"
You might not be able to increase your income much in retirement, but you can certainly pare down your expenses. Money-saving ideas include downsizing into a smaller home, moving to a city with a lower cost of living, selling a car you might not need and taking fewer vacations.
Damian J. Sylvia
Managing Partner
Retirement Income Solutions
