- Assess future health care needs. Get to know Medicare and how any employer-sponsored health benefits will work with Medicare in retirement. Maximize savings specifically intended to meet future health care costs.
Fidelity estimates that a couple retiring in 2004 at age 65 with no employer-provided health care coverage would need $175,000 in savings to fund out-of-pocket medical expenses in retirement.
If you will need health care coverage between your retirement date and when you are eligible for Medicare (generally age 65), find out the cost of coverage under COBRA and various individual or association programs, if you qualify.
- Understand Social Security. Find outhow Social Security works, the benefits due to you, and the steps you need to take to activate your payments upon retirement.
Determine your optimal age to begin taking payments; you may want to consider delaying the age at which you collect in order to increase your monthly payment. If you decide to retire prior to age 62, you should contact the Social Security Administration to order a revised statement with the new retirement date to determine any changes in your payment.
