The Ultimate Retirement Checklist: 15 Must-Do Tasks Before You Retire

Author : Finance Advisor | Published On : 13 Mar 2024

Retirement planning is a journey that requires careful preparation and attention to detail. As you approach this significant milestone in your life, you must ensure that you've covered all the necessary bases to set yourself up for a smooth transition into retirement. To help you navigate this process, we've compiled the ultimate retirement checklist – 15 must-do tasks before you retire.

1. Calculate Your Retirement Needs: To start, evaluate your current financial status and estimate the amount of money you will require in retirement to sustain your preferred quality of living. Take into account things like lodging, medical care, recreational pursuits, and possible travel costs.
2. Review Your Retirement Accounts: Take stock of your retirement savings accounts, including RRSPs, TFSAs, employer-sponsored plans, and any other investments earmarked for retirement. Evaluate your investment performance, contributions, and asset allocation to ensure they align with your retirement goals.
3. Maximize Contributions: In the years preceding your retirement, make it a priority to maximise your contributions to your retirement accounts. To increase your retirement savings, make use of employer matching contributions and, if you qualify, catch-up contributions.
4. Consolidate Accounts: Streamline your retirement accounts by consolidating them into fewer accounts for easier management and better oversight of your investments. Consider fees, investment options, and convenience when deciding which accounts to consolidate.
5. Assess Your Debt Situation: Evaluate your outstanding debt, including mortgages, loans, and credit card balances. Develop a plan to pay off high-interest debt before retiring to reduce financial stress and free up more resources for retirement expenses.
6. Review Social Security Benefits: If you're eligible for Social Security benefits, review your options and understand how your claiming decisions will impact your retirement income. Consider your age, marital status, and expected lifespan when deciding when to start receiving benefits.
7. Explore Healthcare Options: Examine your retirement healthcare alternatives, such as long-term care insurance, supplemental insurance, and Medicare eligibility. Make sure you have enough insurance to cover medical expenses without depleting your retirement funds.
8. Create a Budget: Develop a comprehensive budget that outlines your expected expenses in retirement and identifies areas where you may need to adjust your spending habits. Factor in one-time expenses such as travel or home renovations, as well as recurring expenses like utilities and groceries.
9. Plan for Taxes: Understand the tax implications of your retirement income sources, including withdrawals from retirement accounts, Social Security benefits, and investment income. Explore strategies to minimize taxes in retirement, such as tax-efficient investment vehicles and Roth conversions.
10. Consider Downsizing: Evaluate whether downsizing your home makes sense as you transition into retirement. Downsizing can free up equity for retirement savings, reduce housing expenses, and simplify your lifestyle.
11. Review Estate Planning Documents: Make sure your estate planning documents are updated and accurately express your current intentions. Make sure your beneficiary designations, powers of attorney, will, and trusts all support your estate planning objectives.
12. Prepare for Long-Term Care: Create a strategy for your retirement that accounts for probable costs associated with assisted living or nursing home care. To safeguard your assets and provide financial stability in the event of a chronic sickness or disability, think about getting long-term care insurance.
13. Establish an Emergency Fund: Create an emergency fund in order to pay for unforeseen costs or changes in your retirement income. Try to accumulate enough cash in a liquid, easily accessible account to cover your living expenditures for at least six to twelve months.
14. Seek Professional Guidance: Consider consulting with a retirement planning advisor to ensure that your retirement plan is comprehensive and aligned with your goals. An advisor can provide personalized advice, address your concerns, and help you navigate complex financial decisions.
15. Practice Retirement Living: Finally, take the time to envision and practice your retirement lifestyle before you retire. Experiment with different activities, hobbies, and routines to ensure that retirement is as fulfilling and enjoyable as you imagine.

In summary, meticulous planning and preparation are necessary along the way to retirement to guarantee a seamless transition into this new stage of life. By finishing the things on this ultimate retirement checklist, you'll know that you've taken care of everything and prepared yourself for a safe and happy retirement. To maximise your retirement years and feel secure in the knowledge that your future is well-cared for, begin planning now.