Federal retirement checklist: How prepared are you?

This content is sponsored by The Federal Long Term Care Insurance Program

The date has been circled on your calendar for a long time. Vacation plans are made and flights are booked. It’s almost time to retire. Are you ready?

Here are six things to consider before you walk out of your federal office door for the last time.

Create your retirement budget

This task is best done before you retire, for obvious reasons. If your sources of income fall short of your ideal budget, it’s best to evaluate necessary changes in advance. According to Dana Anspach of The Balance, doing so will give you time to either cut expenses or obtain additional sources of income—not to mention less stress and more fun once the big day arrives.

Evaluate your desired living situation

Many potential retirees have big plans, such as where and how they want to live. According to Elinor Ginzler of AARP, whether it’s a house you own, a perpetual cruise ship stay, a retirement community, or your son’s basement, it’s best to evaluate your living situation before you retire. For example, maybe you’ve always dreamed of living out your days in a retirement community in Florida, but you’ve never been there. Visit Florida a few years in advance to make sure you want to follow through. If it ends up being a bust, you have time to plan something else.

Write your bucket list

A common problem with retirement is that once the honeymoon phase is over, many retirees find themselves bored, and even lonely. Start writing your bucket list a few years in advance. Your bucket list could be a list of life dreams, trips, goals—anything you want. The time to act is now. This will not only alleviate feelings of aimlessness or boredom, but it will also enable you to better plan your budget and time frames for the years ahead. Need ideas? Check out Bucket List Journey for help.

Make your Medicare decisions

Making decisions on which Medicare plan to have can be a headache, especially if you miss your initial enrollment deadline and try to jump on board later. Start researching plans at least a few months before your initial Medicare enrollment period to decide which type of plan you want. According to Wendy Connick of The Motley Fool, doing your research in advance will allow you to choose your plan with confidence.

Figure out Social Security

The age at which you claim your Social Security benefits will have a significant impact on how much money you have each month, states Connick. “Claim early, and your benefits will be permanently reduced. Claim late, and you’ll get ‘delayed retirement credits’ that can give a nice boost to your benefits checks. Claim at your ‘full retirement age,’ and you’ll get the exact amount specified on your Social Security statement.”

Look into Social Security about a year in advance. Because Social Security is based off of earnings, it’s best to start evaluating your needs near the end of your career to make sure your budget and income expectations are correct.

Look into long term care insurance

According to the Federal Long Term Care Insurance Program’s website, “While many enrollees in the Federal Long Term Care Insurance Program may question at one time or another whether long-term insurance is worth the cost, they will ultimately realize the reassurance of having this protection offers value that outweighs the cost of premiums.”

Still on the fence about participating? Here are just some of the benefits of the program, as outlined on the Federal Long Term Care Insurance Program’s website:

• Receive care in your home, from people you know. This includes payment to family or friends that may care for you voluntarily.
• Remain independent and in control. This program allows you to decide who you want to have care for you, whether that be family or a licensed caregiver who works for a home care agency or in a facility, such as an assisted living facility or nursing home.
• Make care decisions with more knowledge and less stress. Participants have full access to care coordinators to aid in finding you the best care provider possible.
• Use stay-at-home benefits. Coverage for modifications to your home that may be needed, up to a certain dollar amount.
• Protect your retirement and savings. Doing this will enable you to keep your retirement and savings funds separate and available for use in all the ways you’ve dreamed of.

Long term care can be expensive and traditional health insurance generally does not cover it. Much like homeowners or life insurance, you hope to never have to use long-term care insurance, but knowing the coverage is there is invaluable. To learn more about your long term care insurance options under the Federal Long Term Care Insurance Program and which plan may be right for you, visit LTCFEDS.com.

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