Many individuals look forward to the day when they retire and spend their days relaxed and free—be it at home reading a book or tanning on a beach. However, they may not think about the planning they need to do beforehand to actually enjoy their retirement. Most people think about the most important aspect—saving money—but they do not think about other critical aspects of estate planning. Some of these steps are simpler than others but all are crucial financial preparation in order to be comfortable in retirement. Below are these vital steps Coloradans should accomplish as they prepare for retirement.
Paying Off Debt
While saving for retirement is extremely important, paying off any outstanding debts is just as critical. This includes debts from credit cards, mortgages, and student loans. Otherwise, the money the individual is saving for retirement will be eaten into by further debt repayment over the years. Many people overlook this crucial step and paying off debts sooner than later will leave more money in the future for retirement pursuits.
Retaining Health Insurance and Other Forms of Insurance
When people near retirement, it is essential they focus on the health insurance they have—both now and in the future. Especially are individuals age—and more health issues arise—they tend to rely on health insurance more than before. Beyond qualifying more Medicare when a person reaches 65 years old, many estate planning attorneys recommend having supplemental insurance as well. This can be one of many options, including a Medigap policy, a Medicare Advantage plan, or—if the individual was a federal employee—their federal employee health benefits.
Many individuals wonder why they require this supplemental coverage. While Medicare is very important and useful, it has many gaps in coverage. These gaps may include critical services like vision care and hearing aids, as well as deductibles and coinsurance. Having supplemental coverage makes sure an individual will be covered health insurance-wise once they are officially retired.
Similarly, individuals nearing retirement should not neglect insurance coverage for other aspects of their life, including home and auto insurance. These types of insurance are just as critical and will still be needed during retirement.
Thinking about retirement can be both exciting and scary. While the above steps are important for retirement planning, there are other aspects that Coloradans should consider as they near this momentous life occasion. Speaking with an experienced estate planning attorney can ensure that they are not forgetting any planning steps before it is too late.
Contact a Boulder Estate Planning Attorney
If you or a loved one has questions about retirement, contact the Boulder estate planning attorneys at the Braverman Law Group. Our attorneys have years of experience drafting estate plans, discussing retirement strategies, and creating trust and retirement accounts. Saving and planning for retirement is extremely important, so by working with the attorneys at the Braverman Law Group, you are in trusted hands. To schedule a free, no-obligation consultation with one of our estate planning attorneys, give us a call today at (303) 800-1588.