retirement transitionRetirement transition is a commonly ignored and misunderstood stage of retirement. Some just think that having ample amount of savings is enough to give you a decent post-employment life.

This transition has something to do with obtaining financial security. This is the key to having an enjoyable, worry-free retired life. It is not just about having enough money to jump-start a new life after years of working. Hence, it concerns careful planning. And this has to start now.

10 important elements in an effective retirement transition plan

Reduce Debt

Carrying your debts into post-employment life is a bane to your retirement transition. Start living a debt-less life. Pay your credit card balance gradually. Settle existing loans with banks and other financial institutions.

Save for the unexpected

This transition prepares you to those turbulent times (e.g. hospitalization, tragedies, or unwanted accidents) that only money could resolve. Taking retirement transition seriously will save you from losing substantial money during these unwanted occurrences.

Insurance is a must

This transition can never be completed without reassessing your insurance needs. Ensure that you have life, health, home, and car insurance. More importantly, check your company’s retirement coverage. This avoids being surprised in the event it has changed its policies regarding retiring employees. Insurance is all about building financial safeguards for yourself and your family.

Income-centered Retirement Transition Plan

The best way to avoid outliving your properties is by having a transition plan that is centered in your income. Start tracking and assessing your expenses. Learn to avoid unnecessary expenses. Why buy a new car if you still have a functional one now?

Social Security Benefits

It is common among retirees and professionals who are designing their retirement transition to have zero knowledge of their social security benefits. That said, it’s the right time to visit the labor office. Start learning about your rights, and how much you are covered. It is also important to apply for social security at least twelve weeks before your 65th birthday.

Savings plan

Contributing to sheltered savings plan helps you to lower your taxes. Hence, it is important that you contribute as much as you can. It’s pretty understandable that it is hard to do. But just think of its future benefits. The lower your taxes are, the more money you could put on your emergency savings. This is important in your retirement transition strategies.

Wills and Trusts

Having a valid will and trust will help to secure your assets. A will is essential in your transition plans. It identifies who will take over your assets in case you die. The same goes for trust. It assigns a beneficiary who has legal rights over your property other than yourself. You don’t want to spend your retirement worrying about these things. So, better include it in your retirement transition.

Invest in IRA

All financial experts would agree that IRA investment is essential in having a perfect transition. Why? By simply investing in an IRA, you get to delay taxes for your income obtained from investments. It’s a legal trick every person who plans his retirement transition knows.

Basic Investment Principles

The type of investments you have now determines the kind of retirement lifestyle you will have in the future. Hence, it’s all about how you plan your transition today. Don’t hesitate to talk to a financial expert about your concerns and your desired retirement life. Ask advice on how to legally increase your savings by way of stocks, bonds, or mutual funds.


Getting a Medicare that fits you and your ideal retirement life is an indispensable element in your retirement transition plan. Medicare may vary depending on several aspects such as age or Social Security membership. The two types of Medicare are Hospital Insurance (which is used to pay for hospital and other health institutions) and Medical Insurance (which helps to pay for doctors and other medical services).

Now, your desired retirement lifestyle is at your fingertips. Just follow these ten things. Surely, your retirement transition will flow naturally.

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