Are you Financially Ready to Retire?

Are you Financially Ready to Retire

As you approach retirement, there are a few financial considerations to be made.  Although you are likely going to receive a steady income in retirement, it is crucial to factor in a variety of expenses that will affect you after you’ve stopped working. While you work out your expenses, be sure you implement and budget for your CT Personal Insurance plans ahead of time.  Here are a few considerations to be made before you choose to retire.

Expenses- John Sweeney, Executive Vice President of Retirement and Investing Strategies at Fidelity, said that most people can expect to spend about 85 cents per every dollar spent before retirement. Managing your cash flow such as Social Security benefits, taxes, other income, and considering health circumstances are important factors in retirement. If you know you have mobility issues or struggle with health conditions, it is advised that you plan on saving more money to accommodate those potential medical expenses.  Lastly, consider your debt that you will be bringing into retirement. Paying off any high-interest debt that is not tax deductible first is recommended. Refinancing your mortgage for the lowest possible rate is also suggested.

Savings- The 2015 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute showed that less than half of workers know how much money they need to save in order to live comfortably in retirement. Compare your monthly expenses now versus how much income you’ll have after you retire. If you savings plan doesn’t allow for your mortgage, insurance premiums, and other standard expenses to be afforded, it is time to reevaluate your plan. Plan for inflation and invest in stock prior to retiring to ensure your monthly expenses are covered.

Taxes- 85% of your Social Security benefits might be taxable if you have other sources of income. If you plan on extracting funds from your IRA or 401(k) then you need to take taxes into consideration, as well. For example, withdrawing an extra thousand dollars per month is recommended to cover taxes.

At Byrnes Agency, we understand that the financial implications of retirement can be daunting. However, we are here to help guarantee your insurance policies are intact to secure you after you stop working. For more information about our personal insurance lines, as well as our other offerings, contact us today at one of our three locations.

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Dayville Office

Phone: (860) 774-8549

394 Lake Rd

Dayville, CT 06241

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

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Norwich Office

Phone: (860) 886-5498

6 Consumers Avenue

Norwich, CT 06360

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

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Woodstock Office

Phone: (860) 928-7928

1226 Connecticut 169

Woodstock, CT 06281

United States

info@byrnesagency.com

Hours of Operation: Monday- Friday 9:00am-5:00pm

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