After decades of hard work, it’s nearly time to throw in the towel and move on with your life. Retirement can be a relaxing change of pace or can be fraught with difficulties. Most post-retirement problems stem from the same source: People are unprepared, especially economically. Don’t be one of them.

Understand Social Security

If you’ve had the same job for a long time, you’ve probably paid into the Social Security program for years. Between the ages of 62 and 67, these wage deductions will finally start to pay off. While Social Security is great, it only covers about 40 percent of a person’s pre-retirement monthly income. Meanwhile, experts suggest retirees require around 80 percent of their former earnings to sustain their standard of living. Hopefully, you have the additional savings to see you through.

Prepare Your Personal Plan

As your career comes to a close, sit down with your financial advisor Wyckoff NJ for a full audit of your accounts. Compare all of your assets, including cash, property and investments, against any outstanding debts to determine your net worth. From there, you can calculate your post-retirement income.

Use this figure to create a sound monthly budget, and remember to factor in projected future expenses such as Medicare premiums. While you’re at it, allocate some of your savings into a separate account for emergencies.

Heed Your Health

Since most people receive their healthcare through the workplace, once you stop working, you need a new plan for meeting your medical needs. This is particularly important as we age and our health becomes more uncertain.

Take advantage of your employee healthcare while you have it. Have your checkups, take care of any outstanding issues, and basically get everything you need while you’re covered.

Citizens over 65 automatically qualify for Medicare and should make sure they’re enrolled in a suitable plan before their retirement date. If you’re younger, private health insurance is vital to fill the gap between workplace insurance and Medicare eligibility.

Advance retirement planning nips trouble in the bud before the big day rolls around. Here’s to your happy retirement.