Wow, I never thought that retirement planning comes in several phases! I thought all we have to do is to get ready for this time in our lives where we can, at last, do what we have not done before not because we did not want to do it, but because we can’t!

I guess it is something we got to be seriously thinking about, preparing for retirement, for like 15 years in advance!

 

PHASE 1

Phase 1 of retirement planning should have been started when we were in our 40’s.  At this time, we should have started developing a financial plan.

It’s a good thing that Simon and I have been good savers so that we have really started saving up even when retirement was still very far ahead into our future. We have also put our money in some stocks, and other investments.

At this stage also, we should have already decided if we wanted to stay put and if not, where we will move?  We should visit places several times in several seasons so we won’t be surprised to find that there are seasons that we cannot stand!

All our best-laid plans for retirement could be derailed if something unexpected happens. This is where retirement insurance comes in.

Insurance for senior citizens like us is an important aspect of retirement planning. We need to do proper planning in order to be financially stable and enjoy better benefits in the retirement years.

Insurance is a means to protect ourselves from probable dangers in the future. Though we can’t measure the loss of life in financial terms, we can still get compensation for the loss. Prepare ourselves in advance and live a life free of worries, Simon says!

We’re used to carrying insurance – most working adults insure their homes, cars, and themselves – but retirement insurance presents unique challenges. What we insure will change and how we provide that insurance will as well.

One of the biggest challenges around retirement insurance is that during our career most insurance decisions are made by the company employing us; in retirement, we will have to make those decisions on our own.  If we plan our retirement budget early, we can also plan out if the kind of retirement insurance that we need.  This way we can have peace of mind during our retirement.

There are retirement income plans, retirement savings, retirement investments, retirement income.  Retirement Insurance Benefits or RIB is a form of social insurance payments made by the U.S. Social Security Administration paid based upon the attainment old age (62 or older).

When we reach age 65, Medicare coverage becomes available, but it will not pay for everything. So we must still consider supplementing that with additional insurance. All of us need insurance benefits. We need to prepare ourselves for what might happen in the future, not just mentally but financially too. If we face some problem arising out of our old age, we need to be prepared for that. Insurance coverage can be a big help in a crisis.

We should not go through our retirement uninsured; wherever we go, it is a necessity!

I will write this down as an important requirement in our retirement.  Simon and I will decide on which agency when the time comes.

Let’s talk about the other phases tomorrow!

 

 

 

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