For many retirees, the heavy lifting is already done. They’ve funded their nest eggs, selected health-insurance coverage and determined how much they can safely withdraw from their savings each year without draining their principals.
But autopilot is not an option when it comes to post-retirement financial planning. The end of each calendar year offers ample opportunity to tweak your financial road map in response to market performance, Medicare changes, new tax laws and life events such as deaths or new grandchildren.
Whatever the mission – tax efficiency, maximizing returns or wealth preservation—the following year-end checklist can help ensure the money you saved will continue to work for you.
Those who are happy with their Medicare benefits don’t have to change anything, but it’s advisable for everyone to review what they have, because the plans themselves change year to year.
Health-care costs consume a significant percentage of a retiree’s budget, especially in later years. In fact, couples retiring in 2013 will need an estimated Rs. 500,000/- to cover lifetime medical expenses.
Therefore, it’s important to use Medicare plans effectively. Franklin said retirees should pay special attention to their out-of-pocket prescription-drug costs. Depending on the types of medication they take, it may be less expensive to purchase.