The retirement plan: key things to consider for when you retire

Whether you look forward to it or dread it, retirement signals a huge change in your life, and it's something that many people struggle to adjust to. Most people have an idea in their mind of the kind of life they envision for themselves, whether that includes more time for travel or other pursuits, and making that dream a reality requires careful planning. Here are just a few of the things you need to consider for when you retire.

Plan your expenses

Put together a budget or spending plan so you can get an idea of what your actual living costs will be once you are no longer working. Consider any assets you might have that could provide income – such as rental properties – and take into account how your spending habits might change. For example, if you previously commuted to work and bought lunch on the go, you will no longer have these expenses once you retire.

Clear your debts

Ideally you should aim to head into retirement without any debts. If you do have debts and expect to retire soon, tackle the debts with the highest interest rates first. Credit cards usually have the highest interest rates, followed by car loans and home equity loans. You'll feel a much greater peace of mind if you can go into retirement debt-free, so if it's possible for you to do that, make it your goal.

Getting insurance

When approaching retirement, consider how you would deal with the sudden financial burden of a health issue. Would you be able to afford it? If not, then you should definitely consider reviewing your insurance when you retire. This could include looking into health insurance, critical illness cover and life insurance, all of which you can learn more about here on InsureMe-on-Line.

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