August 9, 2023

Retirement often brings about changes in income, lifestyle, and healthcare needs.

Here are some common benefits that you might need to replace or consider in retirement:

  1. Employer-Sponsored Health Insurance: Many rely on their employer's health insurance plan. Upon retirement, you might need to transition to Medicare (if you're in the United States) or another health insurance plan to cover medical expenses.
  2. Pension or Retirement Plan: If your employer provides a pension plan, you'll need to consider how your retirement income will be impacted if you no longer receive this regular income stream. You should replace it with Social Security benefits, personal savings, or other investments.
  3. Employer-Sponsored Life Insurance: If you have life insurance coverage through your employer, you should consider getting a life insurance policy if you still have dependents or financial responsibilities in retirement.
  4. 401(k) Matching: Many employers match a portion of their employees' 401(k) contributions. You won't have these matching contributions upon retirement anymore, so you'll need to rely more on your personal savings.
  5. Paid Time Off (PTO) or Vacation Days: In retirement, you won't have paid Time off or vacation days as provided by your employer. You'll need to structure your own leisure time and budget for any travel or activities you want to do.
  6. Stock Options or Employee Stock Purchase Plans: If you have stock options or own company stock through an employee stock purchase plan, you'll need to consider how to manage these assets in retirement.
  7. Employer-Sponsored Disability Insurance: Disability insurance your employer provides may cease once you retire. You should explore other options to replace this coverage.
  8. Subsidized Commuting or Transportation Benefits: If your employer provides subsidies for commuting or transportation, you'll need to adjust your budget to cover these costs.
  9. Professional Development and Training: Many employers offer professional development and training opportunities. In retirement, you need to finance any learning or skill development independently.
  10. Social Interaction and Networking: The workplace often provides social interaction and networking opportunities. You should actively seek social activities and communities to stay engaged and connected upon retirement.

Planning for these changes is essential to creating a comprehensive retirement plan considering your financial goals, healthcare needs, and lifestyle preferences. Consulting with one of DWAM’s financial advisors can prepare you adequately for these transitions. Call us today at 901-435-4250.

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