If you plan to relocate in retirement, start visiting potential destinations at different times of the year. Many people dream of retiring to an area they’ve visited on vacation, but that’s not the same as living like a local.
Plan for the cost of long-term care. Premiums for long-term care insurance rise as you age, so this may be a last chance to purchase an affordable policy.
While the pandemic made many seniors wary of nursing homes, most current policies provide benefits that include coverage of home health care. Talk to an insurance agent who represents a number of companies so you can compare coverage and costs.
Start shifting some of your savings to more conservative investments — but be careful.
With interest rates so low, an overly conservative portfolio could lag inflation, exposing you to the risk of running out of money.
Many workers at this stage opt for an allocation of 60% in stocks, 40% in government bonds. But with interest rates at record lows, you may need to diversify your bond allocation with funds that invest in triple-B-rated corporate bonds, preferred stocks, convertible bonds and real estate investment trusts.
Prepare for the unexpected. Many people end up retiring earlier than planned because of layoffs or health issues.
