Your autumn years: What you should consider before retiring

You've thought about what you'd like to do in retirement—maybe even when you'd like to retire. But before you enter those autumn years, there are a number of other things that are smart to consider—where to retire, how much you'll receive from Social Security, or having enough insurance. See our pre-retirement checklist to the right.

We'll discuss what to keep in mind with each of these topics and where you might go for more information. Making sure these items are in line will help make pursuing your retirement goals easier.

NOTE: Many of the topics in this article are the subjects of entire articles and books that are available to you online and in print. We recommend you research these topics in greater detail or consult a financial advisor or attorney before making any financial decisions.

Can you afford to retire?

Experts estimate that you'll need anywhere from 70% to 90% of your current income in retirement to maintain your standard of living. If you expect to do more in retirement, you'll likely need to save more. You should have a plan in place, but if you don't, now's the time to start one. You can use online calculators and tools to help, but you might also check with a financial advisor, who can get to know your financial situation and answer any questions you may have. Be sure to discuss your goals, including more concrete plans on what you'd like to do with your money in retirement.

When will you retire?

According to labor force data (see the chart below), the average retirement age is 62. But depending on your retirement savings, you may need to work a little longer—or continue working after you retire. Some online calculators may be able to help you make this determination, but your financial advisor may be able to show you ways to reach your goals without delaying or working in retirement.

Estimated average age of retirement and expected years of postwork retirement by gender for selected periods (1950-2005) and projected periods (2005-2010)

Period	Social Security data¹		Labor force data²		Expected years of postwork retirement³

	Men	Women	Men	Women	Men	Women

1950-1955	68.5⁴	67.9⁴	66.9	67.6	12.0	13.6

1965-1970	63.4	64.3	64.2	64.2	13.5	16.7

1980-1985	62.9	62.8	62.8	62.7	16.0	20.5

1985-1990	62.8	62.8	62.6	62.8	16.3	20.3

1990-1995	62.7	62.6	62.4⁶	62.3⁶	17.2	21.3

1995-2000	62.6⁵	62.6⁵	62.0⁶	61.4⁶	18.0	22.0

2000-2005	62.6⁵	62.5⁵	61.6⁶	60.5⁶	19.0	23.1

2005-2010⁷	()⁸	()⁸	61.6⁶	62.0⁶	18.6	21.6

Source: U.S. Bureau of Labor Statistics Monthly Labor Review article “Older workers: increasing their labor force participation and hours of work,” January 2008 (www.bls.gov/opub/mlr/2008/01/art3full.pdf).

Where will you retire?

Where you retire is also an important consideration. You may choose to stay where you are, but if you've been thinking about moving to a different part of the country or a completely different country, you may want to consider:

The climate (and weather): Will it be one you can adjust to easily? Or have you lived in that climate before? A different climate can be quite an adjustment, especially in your later years.
The taxes: Some states have no personal income tax. Others have no sales tax. And every state has different rates for the taxes they assess. How will this affect your retirement plans?
Transportation: If you drive, is it easy to get from place to place? How's the traffic? Or is there public transportation in case you can't or don't want to drive?
Your hobbies: Do you want to be closer to places that enable you to enjoy your favorite pastimes, such as golfing, skiing, or beachcombing?
Your housing: Will you be living in a house, townhouse, condo, or apartment? If you plan on buying, what's the real estate market like there? Or will you be RVing around the country?
Your friends and family: Will you be in a place where your friends and family can easily visit? Or is it someplace where you can make new friends, if you want to?

Also, consider reading more about the area you'd like to move to or books on the subject of retirement relocating.

How healthy is your 401(k) or pension plan?

Your human resources representative is a good resource for this information. Even if you've already gotten this information in the past, you might ask for a current summary of your employer's plans. Also, review your 401(k) or other benefit statements—to see if there are any errors or if you need to make any changes. You might look at your spouse's plans, too. If you don't already participate in your employer's 401(k) plan, consider starting—no matter what your age.

Will you have enough insurance?

That not only includes medical insurance, but also life, long-term care, auto, and homeowners insurance. Remember that you'll likely have Medicare to pay for some of your health insurance. And there also may be the option of getting COBRA or temporary medical insurance coverage from your employer after you retire. You might also consider life insurance, which may offer tax advantages and a variety of other benefits (consult your tax advisor). Long-term care insurance can help prevent a nursing home stay or illness from using up your savings. And as your home and auto insurance needs change, be sure to periodically review your auto and home coverage.

How much will you get from Social Security and when?

You receive a Social Security Statement every year that shows your earnings with Social Security taxes paid—and summarizes the estimated benefits you and your family may receive with those earnings. To help you estimate your future retirement benefits, consider using the Social Security Administration's online calculators.

Is your will in order?

Before drafting a will, you have a number of considerations to make: To whom will you leave your assets? Who will be your executor? Who will be the guardian for your children? With all the decisions that need to be made, here are some things to keep in mind.

Do some background research: You'll most likely need a lawyer, but to save yourself some time and money, learn about the process before meeting with an attorney.
Calculate your net worth: Consider putting this information into a spreadsheet or other document. An electronic format is easier to update as your situation changes.
Choose a lawyer: Many lawyers specialize in specific areas, so consider lawyers with expertise in estate planning or probate.
Draft your will: If you feel confident drafting a will on your own, you might use online software. But lawyers may help reduce errors and the possibility that the will might be deemed invalid.

Be sure to update your will every three to five years, or if you experience a major life or financial event. More information about wills can be found online through your local self-help law center.

Do you have an IRA?

Individual Retirement Accounts (IRAs) have their advantages—even when you're retired. For example, with a Roth IRA there are no required minimum distributions, so you can keep your money in the IRA for as long as you want. And you may be able to pass the money to heirs free of taxes. Other IRAs also offer tax advantages. (Consult your tax advisor.)

If you're thinking about opening an IRA, consider one from EverBank. Most of our everyday accounts can be opened as an IRA. That means you can save for retirement with foreign currencies, non-FDIC insured metals* or even FDIC-insured money market accounts. EverBank IRAs also offer:

Flexibility to roll over your existing IRA into another EverBank IRA as your goals change.
No account set-up or maintenance fees on domestic IRAs**.
Diversification options with access to domestic and foreign markets.
Convenient online account management (not applicable to foreign currency accounts).

Learn about all of our accounts that can be opened as an IRA—then open one today.

Important Disclosures