Wait before you retire: can you answer these 5 questions? | Personal finance


4. How are you going to spend your time

Decisions about how you spend your retirement affect both your quality of life and how much money you will need as a senior.

If you don’t have a plan to fill your day, the boredom and loneliness could make you regret leaving your job. On the other hand, if your projects involve expensive hobbies, you may need to rethink how much income you will need.

5. Where will you get your medical coverage

Finally, think about how you’ll pay for medical care, especially if you’re not yet eligible for Medicare if you retire before age 65.

Maintaining employer coverage through COBRA or purchasing individual insurance can come at a high cost, so research each of these options carefully to make sure you can afford your insurance.

And don’t assume that becoming eligible for Medicare means you don’t have to worry about medical bills. Premiums for supplemental insurance, coinsurance and co-pay, as well as other personal expenses can still be very expensive.

By answering these five questions, you can tell if you are ready to meet your financial needs in your later years. If you find that you won’t have enough money to cover everything you need, spending extra time at work could help you secure a better retirement.

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