Planning in the Retirement Red-zone
Two or three years before you officially plan to retire, it’s time to make further preparations. During the pre-retirement phase, you saved and invested prudently to help prepare you for a successful retirement. As you get closer to retirement, you may have more choices to make depending on your pension system and your plans.
Mind the Gap
You may also have a gap between when you retire, and you begin to receive benefits and/or healthcare and other benefits. It’s important to plan for this period and have liquid savings to carry you through the gap between your employment and the time you are fully receiving your pension and other benefits.
Final Average Salary (FAS) Considerations
In many pension plans, your final pension payment will be based on the Final Average Salary, based on your highest three years or final 36 months employed. If you are earning the highest salary of your career, it may be important to ensure that you time your retirement appropriately, so that you retire at your highest salary and therefore get the highest benefits possible.
Lineweaver Wealth Advisors, LLC is a Registered Investment Advisor.
*: Yahoo.com Article: 64% of Americans Aren’t Prepared for Retirement – and 48% Don’t Care.
1: Crain's Top 25 RIA: Based on assets under management
