Life stages: Transitioning to retirement page

What are some key steps and considerations you can make as you are near retirement? Check out this list to help answer questions about how you can prepare to transition into retirement.

Focus on your spending and saving

• Build a budget. Knowing where your money goes can help you spend wisely and save consistently. Get started by building your budget with Voya’s Budget Calculator.
• Build an emergency fund. Life is full of surprises. Shield yourself from the unexpected by building an emergency fund to cover 3-6 months of expenses. The more you have saved, the better. To help save time, consider automated saving options.
• Keep saving for retirement. Consistently saving as much as you can for retirement now may pay off later. Here are a few ways to start saving for retirement. Systematic investing does not ensure a profit nor guarantee against loss. Investors should consider their financial ability to continue their purchases through periods of low price levels.
  • Contribute to your employer-sponsored retirement plan or open an IRA.
  • If your employer offers matching contributions, take advantage of them.
  • Consider a Roth IRA or Roth contributions to your employer’s retirement plan for a more flexible way to save for retirement.
  • Stay on track with automated savings options.
  • Conduct an annual review of your investments to ensure they continue to match your goals.
  • If you are 50 or older, save more for retirement by taking advantage of “catch up” contributions. If you Remember, you can take a loan for college, but not for retirement.
• Get out of debt. Imagine what it will be like when you don’t owe anyone anything. Along with saving for your emergency fund, if you have any personal debt, credit card debt or student loans consider committing to paying it down while still having fun.

Protect yourself and your loved ones

• Make insurance a priority, starting with health insurance. If you have a high-deductible health plan, consider opening a Health Savings Account (HSA). Contributing to a Health Savings Account (HSA) can help you take advantage of tax benefits and increase your healthcare savings. As you near retirement, healthcare can eat up your savings. Money you put in a HSA can be used to pay your medical expenses now and into retirement.
• Do you have loved ones who depend on you? Consider including life insurance in your planning. Start by calculating your life insurance needs.
• Make sure you have the last word. Consider taking advantage of wills and trusts to leave your legacy the way you intended.
• Are you a caregiver for someone with special needs? Gain knowledge as you make decisions for you and your family with planning for special needs.

Financial considerations

• The million dollar question — When should I retire? And how long will my retirement savings last?
• Be a planner. Retirement Income Planning to create steady income from your savings.
• When is the right time to apply for Social Security?
• What are my options, if I'm not 65? Health Insurance Before Medicare (Health insurance options if you plan to retire before age 65 and won’t qualify for Medicare)

Helpful tips

Storing your data in an easily accessible, secure space will help you and loved ones find important information when it’s needed. Suggested list of information to store in one place:

• Your monthly budget with income, spending and saving plans.
• Saving and investing accounts as well as any other assets you own.
• Important documents such as life insurance policies, wills, trusts, powers of attorney, health proxies and tax information.
• Contact information for financial professionals you work with – e.g., tax preparer, banker, insurance agents.