If you’re about to retire, think about finances, health care, lifestyle and goals

One of the most pressing questions for those approaching retirement is how much money they'll need to maintain their desired lifestyle. While there's no one-size-fits-all answer, financial experts often recommend aiming for a retirement income that's about 80% of your pre-retirement earnings.

To determine your specific needs, consider the following factors:

• Expected living expenses. Calculate your anticipated monthly costs, including housing, food, utilities and discretionary spending.
• Health care costs. Factor in potential medical expenses, including Medicare premiums and supplemental insurance.
• Longevity. Consider your family history and current health status to estimate how long you might need your retirement savings to last.
• Inflation. Account for the rising cost of goods and services over time.
• Desired lifestyle. Think about your retirement goals, such as travel or hobbies and their associated costs.

Once you have a clear picture of your expected expenses, you can use various retirement calculators available online or consult with a financial professional to determine if your current savings and expected income sources are sufficient.

The decision of when to start claiming Social Security benefits can significantly impact your retirement income. You can begin receiving benefits as early as age 62, but waiting until your full retirement age (FRA) or even up to age 70 can result in higher monthly payments.

Consider these factors when deciding when to claim:

• Your financial needs. If you require immediate income, claiming earlier might be necessary.
• Your health and family history. If you expect to live well into your 80s or beyond, delaying benefits could result in more lifetime income.
• Your spouse's benefits. Coordinating claims with your spouse can maximize your household's total Social Security income.
• Your continued employment. Working while receiving benefits before your FRA can result in a temporary reduction of benefits.

Remember, the decision to claim Social Security is personal and should be based on your individual circumstances. Consulting with a financial professional can help you make an informed choice.

Medicare is a crucial component of retirement health care planning. Most people become eligible for Medicare at age 65, and it's important to understand the enrollment process and deadlines to avoid penalties.

Here's a basic overview of Medicare enrollment:

• Initial enrollment period (IEP). This seven-month period includes the three months before your 65th birthday, your birthday month and the three months after.
• Parts A and B. You'll be automatically enrolled if you're already receiving Social Security benefits. Otherwise, you'll need to sign up during your IEP.
• Part D (prescription drug coverage). You can enroll in a standalone plan or choose a Medicare Advantage plan that includes drug coverage.
• Medigap (supplemental insurance). You have a six-month open enrollment period starting the month you turn 65 and are enrolled in Part B.

If you're still working and covered by an employer's plan at 65, you may be able to delay Medicare enrollment without penalty. Be sure to check with your employer's benefits administrator and Medicare to understand your options.

Creating a retirement budget is essential for managing your finances and ensuring your savings last throughout your retirement years. Here's how to get started:

• List all sources of income. Include Social Security, pensions, retirement account distributions, annuities and any other regular income.
• Estimate fixed expenses. Calculate costs for housing, utilities, insurance and other regular bills.
• Estimate variable expenses. Consider food, transportation, health care and discretionary spending.
• Account for irregular expenses. Budget for home repairs, car replacements and other infrequent costs.
• Plan for inflation. Assume a 2-3% annual increase in expenses.
• Create a buffer. Set aside funds for emergencies and unexpected costs.
• Review and adjust regularly. Your budget should be flexible and adapt to changing circumstances.

Remember to be realistic about your spending habits and lifestyle expectations. It's often helpful to track your expenses for several months before retirement to get an accurate picture of your spending patterns.

Generating a steady income stream in retirement typically involves a combination of strategies. Here are some popular methods:

• Systematic withdrawals. Draw down your retirement accounts at a sustainable rate, often around 4% annually.
• Social Security benefits. Optimize your claiming strategy to maximize this guaranteed income source.
• Annuities. Consider purchasing an annuity for a guaranteed income stream.
• Dividend-paying stocks. Invest in stable companies with a history of consistent dividend payments.
• Bonds and bond ladders. Create a portfolio of bonds with staggered maturity dates to provide regular income.
• Rental income. If you own property, consider renting it out for additional income.
• Part-time work. Engage in part-time or consulting work to supplement your retirement income.

The best approach often involves a combination of these strategies, tailored to your individual needs and risk tolerance. Consulting with a financial professional can help you develop a personalized income plan.

Maintaining good health is crucial for enjoying a fulfilling retirement. Here are some strategies to stay healthy and active:

• Regular exercise. Engage in a mix of cardiovascular activities, strength training and flexibility exercises.
• Healthy diet. Focus on a balanced diet rich in fruits, vegetables, whole grains and lean proteins.
• Mental stimulation. Keep your mind sharp with puzzles, reading, learning new skills or taking classes.
• Social connections. Maintain and build relationships to combat loneliness and promote mental health.
• Regular check-ups. Stay on top of your health with routine medical and dental appointments.
• Volunteer work. Giving back to your community can provide a sense of purpose and improve mental health.
• Travel. Explore new places to stay active and engaged.
• Hobbies. Pursue interests that keep you mentally and physically active.

Remember, it's never too late to adopt healthy habits. Even small changes can have a significant impact on your overall well-being in retirement.

Having the right legal documents in place is crucial for protecting your assets and ensuring your wishes are carried out. Consider preparing the following:

• Last will and testament. Specifies how you want your assets distributed after your death.
• Living trust. Can help avoid probate and manage assets if you become incapacitated.
• Durable power of attorney. Designates someone to manage your financial affairs if you're unable to do so.
• Health care power of attorney. Appoints someone to make medical decisions on your behalf if you're incapacitated.
• Living will. Outlines your wishes for end-of-life care.
• HIPAA release form. Allows designated individuals to access your medical information.
• Beneficiary designations. Ensure these are up to date on retirement accounts, life insurance policies and other assets.

Consult with an estate planning attorney to ensure these documents are properly prepared and reflect your current wishes.

Retirement offers the opportunity to pursue passions and find new sources of meaning. Here are some ways to cultivate purpose and fulfillment:

• Volunteer work. Contribute your skills and time to causes you care about.
• Mentoring. Share your expertise with younger generations in your field.
• Learning. Take classes, learn a new language, or pursue a degree.
• Travel. Explore new cultures and broaden your perspectives.
• Creative pursuits. Engage in art, writing, music or other creative activities.
• Start a business. Turn a hobby or passion into a small business.
• Family time. Strengthen relationships with children, grandchildren and other family members.
• Join clubs or groups. Connect with others who share your interests.

Remember, retirement is a time to redefine yourself and explore new aspects of life. Be open to new experiences and don't be afraid to step out of your comfort zone.

Retirement marks the beginning of an exciting new chapter in your life. By carefully considering your finances, health, legal affairs and personal goals, you can set yourself up for a fulfilling and enjoyable retirement. Remember that retirement planning is an ongoing process, and it's never too late to make positive changes.

As you embark on this new journey, stay flexible and open to new experiences. Your retirement years offer the freedom to pursue your passions, strengthen relationships and continue growing as an individual. With thoughtful planning and a positive outlook, you can make the most of this rewarding phase of life.

Whether you're focused on financial security, staying active and healthy or finding new sources of purpose, remember that there are numerous resources available to help you navigate this transition. Don't hesitate to seek advice from financial and health care professionals and legal experts as you plan for and adjust to retirement.

Embrace this new chapter with enthusiasm and confidence. Your retirement years can be some of the most rewarding and enjoyable of your life.